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This chapter introduces the ratio of the total amount of loans to the GDP as an indicator of the scale of financial development and the ratio of the total amount of loans to total deposits as a proxy variable for financial efficiency. The two indicators may affect the urban–rural income gap and the transfer of agricultural labor to varying degrees in the specific environment of China’s economic development. In terms of the distribution of financial resources, China’s financial system shows a clear tendency toward urbanization, which is inclined to the state sector in credit allocation. Such an unbalanced development may hinder the transfer of agricultural labor.²² According to the analysis of Zhang Qi et al. and Ye Zhiqiang et al., financial development has significantly expanded the urban–rural income gap.²³ They also note that the improvement in financial efficiency with the development of financial scale may alleviate the tendency of urbanization and state-owned enterprises, and financial development may bring about the narrowing of the urban–rural income gap. Yao Yaojun’s analysis shows that the efficiency of financial development is negatively correlated with the income gap between the urban and rural areas, despite the positive correlation between the scale of financial development and the urban–rural income gap.²⁴