China News Service, Beijing, September 20 (Reporter Wei Xi) The "China Rural Financial Services Report 2018" released by the Central Bank of China on the 20th pointed out that the contradiction between supply and demand in rural finance in China is still prominent. In line with the requirements of the rural revitalization strategy and the financial supply-side structural reform, the task of rural financial service reform and innovation is still arduous.

The report puts forward five major tasks for the next step of reform.

First, promote market-oriented reform and build a more competitive rural financial system. It is proposed that in accordance with the principles of relaxing access, deepening reforms, and improving risk prevention and control mechanisms, community banks can be considered as a breakthrough point to appropriately liberalize access and attract private capital to enter. Standardize the development of small loan companies and other non-deposit lending organizations, and actively play their useful and complementary role in serving rural revitalization.

The second is to improve rural financial supervision. Clarify the regulatory responsibilities of central and local financial regulatory authorities and form a reasonable and effective division of labor between central and local financial regulators. Strengthen information sharing and regulatory cooperation to avoid regulatory gaps and transform regulatory methods.

The third is to focus on key areas. Focus on key areas of rural revitalization such as poverty alleviation, food security, green agriculture, and the integration of primary, secondary, and tertiary industries, and strengthen innovation in financial products and service methods. Actively and steadily promote the mortgage loan business for the management rights of rural contracted land, promote the mortgage of collective operating construction land use rights, collective asset shares, etc. in accordance with laws and regulations, and form a comprehensive and diversified rural asset mortgage (pledge) financing model. Financial institutions are encouraged to raise funds through the issuance of green financial bonds and other methods for use in green fields such as pollution prevention and control, clean energy, water conservation, ecological protection, and green agriculture.

The fourth is to improve supporting supporting policies and stimulate the endogenous motivation of financial institutions. Further optimize and refine the positive incentives for currency, finance, taxation, and supervision, and shift from "compensating for institutions" to "rewarding excellent businesses" and so on. At the same time, we will give full play to the role of the national financing guarantee fund and guide more financial resources to support rural revitalization.

The fifth is to fully rely on digital technology to form a good situation of complementary advantages. Commercial banks are encouraged to use appropriate physical branches to make up for the "digital divide" shortcomings. Strengthen the construction of financial standards in the field of digital inclusive finance. Regulate the development of Internet finance in rural areas, etc.