Construction of Rural Financial Development Level Measurement System and Its Empirical Analysis

Current measurement methods for rural financial development level can not directly embody the financialsupport situation for agricultural households, peasants and agriculture by rural finance, can not reflect thequality and sustainability of rural financial development and do not consider the demanding features of the ruralfinance at different economic development stages. Based on the features of the penetration, direction andsustainability of rural financial development, this paper sets up a rural financial development level compositemeasurement system with the trinity and five indicators plus one factor, and makes an empirical analysis andevaluation on the rural financial development level in each region. The results show that since 2006, the total levelof rural financial development of China is significantly rising and there is a narrowing trend in regional gap.However, the concentration degree for rural loan distribution is rising and the proportion of the agriculturalhouseholds who got the loans demonstrates the descent trend. Furthermore, the situation of rural finance withpreferring the rich but disliking the poor is intensified. Chinese Government should pay attention to both thesustainability and the penetration in rural finance and actively push forward the organic integration between ruralfinance and rural industrial development as well as modern agriculture.