Research on the Resource Allocation in Rural Financial Market——Also on the Building of Competitive Rural Financial Market

Analysing resource allocation of China's rural financial market in imperfect competition theory,it is concluded that the main financial(financial institutions) meets the minimum financial requirements with the highest prices in rural areas.On this basis,it is shown that increasing financial institutions that promotes financial market supply and demand is capable improving both peasant's and bank's earnings,So that the development of competitive rural financial market is the solution to the problem of rural financial markets.Therefore,two aspects policy recommendations include mechanism and e environment building are proposed.