On constructing rural policy-based financial system of under-developed regions

This article has, in the first place, identified herein the definition and characteristics of rural policy-based finance; secondly, analyzed features of policy-based finance in supporting rural economy internationally; and finally pointed out the path to construct rural policy-based finance in underdeveloped regions in China. Under present condition, it is imperative for the government to demarcate the business scope of rural policy-based insurance, establish feasible rural guarantee mechanism, improve multi-layered rural disaster & risk shifting & sharing mechanism and thus gradually set up long-term mechanism on rural policy-based financial system development.