Research On Objectivity And Feasibility Of Building Mini Banks

In the world wide, universal bank becomes the trend of international finance development and intensification, especially in western countries. But we could not deny that there are lots of regional medium-sized financial institutions being with the few large banks. For example, there are 20 thousand small and middle sized banks in America, and Italy has 90 thousand of them. We can see that the economy of China is unbalanced. In the situation, small banks have their existing value and significance in China.It's one of the important approaches to build a diversiform finance body by mini Banks. Mini banks can expand the effective range of the banking system, deflate the gap of markets, maintain the market share of national banks, and reduce the pressure directly given by national or international banks. In china, the research of small and middle sized banks is just at the beginning stage, most of which are barely about the concept and the characters of private banks and community banks, it is very in lack of the systematic research. This article will explain the profound things in a simple way, explore the definition of china's mini banks, and discuss the method of management and the way to reduce the risk. And the way to establish mini bank is to legalize underground finance.First I will give the brief summarize of the former researches in China and America, including the concept of mini banks. Then the hardcore of this article is coming, including objectivity, feasibility and operating system of building mini banks in China.