Abstract

As the“Inclusive finance”rise around the world，a new type of financial concept also gradually began to flourish in China.General finance is an organic part of national mainstream financial system，to meet the group's financial demand，at the same time，reduce the cost of financing process of China's trade in our country，so we should establish an Inclusive financial system which has clear property rights，reasonable division of labor，complementary advantages，moderate competition，effective regulation of high quality and sustainable development.“Inclusive finance”can improve eliminate poverty of people，to a certain extent，and expand domestic demand，improve urban and rural dual structure，which is of great significance for change of China's economic growth method and sustainable development.Three rural problems are namely the countryside，agriculture and farmers.To solve three rural problems is to realize the peasants' income，agricultural development and rural stability.“Three rural issues”has always been the primary problem in the overall situation of China's reform，opening up，and modernization and also been crucial to the development of our country.It is not only about the livelihood of farmers in 60% of the population of China's vast rural areas，but also about the effectiveness of China's socialist modernization.It is an important strategic task in our country.

After 20 years reform of rural financial system，the rural financial system so far has included commercial，cooperative，policy financial institutions and the system is dominated by formal financial institutions and looks rural credit cooperatives as the core.In the vast rural areas，commercial，policy and the cooperative financial institutions have differently developed，and gradually formed the basic framework of Chinese rural finance.As an important part of the rural financial system，the village bank is a bank financial institution that specializes in “three rural”.Since set up there are nine years，its loan is characterized by “support agriculture，small，scattered.” To meet the demand of the rural market，it lends quickly，serves in the fields door-to-door，has good service attitude and has simple procedure.It adjusts measures to local conditions for rural market which is lack of mortgage guarantee mechanism；this practice was warmly welcomed by the farmers and rural small enterprises.However，as time goes on，many problems of village Banks in support of “agriculture，rural areas and farmers” have been exposed，the function of serving “three rural” is weakened gradually and it is failed to stand out in the position in the “three rural” construction and the effect is very limited.So at this stage，the period in which the national support development of“Inclusive finance”strongly，it is very important to do further study of village Banks in our country in the position and role of the “three rural” construction.

From currently domestic and foreign research status of rural financial system，there are still some problems about rural financial system in our country，such as narrow scope of policy-oriented financial services，weakened function，unable to meet the financial needs of “three rural”，etc.Village Banks are a new type of villages and towns institutions which are dedicated to provide financial services for the broad masses of rural areas，although they played an irreplaceable role in the development of countryside，agriculture and farmers，there is a series of problems in the process of development.The current domestic scholars have seen a series of defects of rural financial system in our country and have pointed out that on the one hand，there is a bag money demand gap in the rural market，but on the other hand，due to the natural vulnerability of agriculture，there is increased risk，the traditional commercial financial institutions gradually withdrew from the rural market because of the commercial and profitable management principle.At present，a lot of researches have analyzed the deficiency of the existing rural financial system，but the researches about how the establishment and development of village Banks promote the construction of the three rural services and perfect the rural financial system of our country are not comprehensive enough.Therefore，this study，which is based on existing researches，attempts to further explore how the village banks have improved the rural financial system in our country，what role it plays in the construction of the “three rural” and in terms of the effect of the development of the village bank，this research will further explore how to improve the construction of China's rural banks，and better build China's rural financial system..

In the existing research both at home and abroad，small Banks abroad mainly exists in the form of community banking organization，development of community Banks in the United States is more mature and the study about that is also very much.Foreign scholars have in-depth analysis about the advantages of small banks and the irreplaceable role of small banks in financing of the small and medium enterprises from the institutional economics，information economics，resource allocation theory and other aspects.At home，although scholars have noticed a series of problems in the process of establishment and development of rural Banks，there are some blank of research in how to solve some existing problems of village Banks and how to give full play to the function of village bank for agriculture，rural areas and farmers.This paper starts from the basic concepts of inclusive Finance，rural construction and rural banks.Through the research on the rural financial system and the service of rural and rural banks，this paper studies the effectiveness of village and village banks in the process of “three rural” and a series of questions，and then take the research in how rural banks play the role of the new rural financial institutions and how serve the three rural issues better.

In terms of theory and practice，this paper has a detailed analysis of the village banks' impact on development of “agriculture，rural areas and farmers”.Theoretically，the development and popularization of village banks are in favor of financing in rural areas and the improvement of agricultural production activity，promoting the development of rural financial market and the transformation and upgrading of rural production structure，so that they can pull the rural employment，increase agricultural output，pull the farmers' consumption.However，if village Banks of “Inclusive finance” play a positive role，there should be certain requirements.The influence factors of village bank that promote the development of “three rural” is involved，including the development degree of the financial system in China，improvement of“Inclusive finance”functions of rural banks，the market structure of rural financial market，the differences between the different economic development levels of different regionals，rural economic and geographic conditions，agricultural technology level and farmers' attitude toward risk preference and so on.Influenced by these factors，there are differences between effects of village banks on the development of the “three rural” and theoretical expected results.

It can be seen in the empirical analysis that，on one hand，village banks has negative effects on the influence of farmers' income；on the other hand，village banks has a negative impact on rural employment.It indicates that the development of village banks in our country and its functions do not fully consider the influence of realistic condition.It can lead to the weakened role of the rural banks on the “three rural” development.At the same time，the numbers of eastern and Middle Western village banks and also differences between their asset sizes have direct and indirect impact on “three rural” status through regional heterogeneity.The direct effects include the impact of village banks on rural employment，agricultural output and farmer's income，while indirect effects include the impact of village banks on rural fixed asset investment，farmers' consumption expenditure and regional heterogeneity.

The implementation of the relevant policies should focus on the comprehensive consideration of the construction conditions of village banks，brand strength，economic and geographic differences in different regions and the differences in rural development.From two main aspects of the village bank construction and the “three rural” problem，we should strengthen the positive role of the rural banks to support the “three rural”，the development of “three rural”，promote rural areas economic development and improve farmers' life.At the same time，we should also consider the impact of regional heterogeneity on the mechanism of village banks.While strengthening the core competitiveness of the villages and towns，we also attach importance to improving the rural human capital，increasing the level of agricultural investment，accelerating the transformation of agricultural production and management，promoting the effective flow of labor，and effectively improving the rural productive forces through the effective effect of rural areas.

Keywords：Rural Banks；“Three Rural” Construction；Inclusive Finance；Rural Finance