Analysis On Sustainable Development Of China Village Bank

Village banks refer to the banking institutions which are approved by the China Banking Regulatory Commission according to related rules and regulations, and set up in rural areas to offer financial services for the rural economic development, agriculture and local peasants, and they are invented by domestic and foreign financial institutions, domestic non-financial enterprise legal persons and natural capital. After the release of the"Some suggestions about adjusting and relaxing access policy of banking financial institutions in rural areas to better support the construction of the new socialist countryside"on Dec.20th 2006 ,village Banks spring up like mushrooms in the rural areas of our country. The appearance of village banks has positive effects to improve rural financial organization system and construct new channel of rural financial supply. and activate the rural financial market. But, village banks as a newborn thing will encounter a lot of problems in the concrete practice. inevitably.Therefore, research on how to realize the sustainable development of the village banks of our country has important meaning for our new socialist rural construction.There are totally five parts in this paper. The first part illustrates the background study and the method study of this paper and the present research results at home and abroad. The second part introduces the established background and definitudes the intension of village banks of our country, and compares the definition with other rural financial institutions. The third part analyzes the development situation and major problems of sustainable development of village banks of our country, and explores the existing problems of the sustainable development of village banks from four aspects of operation management, service environment, institutional system and supervision. The forth part studies the successful experience of Grameen Bank and absorbs and draws upon fruits during the sustainable development of village banks of our country. The fifth part is the key point of this paper and on the basis of study and analysis in the above sections the author proposes countermeasures and suggestions to promote the sustainable development of village banks of our country.