Study On The Development Model Of Community Banks In China

Due to the continuous reform in the financial system, especially the entire opening of banking market by the end of 2006, it is greatly significant in the discussion and fulfillment on developing community bank in China. During the NPC and PCC in the beginning of 2006, China national democratic construction association make a recommendation for establishing community banks to resolve the financial problem which our Small and Medium-sized enterprises have to face in the 11th"five-year"period. LiuMingKang, chairman of China securities regulatory commission, attending the discussion with China national democratic construction association, put forward transferring China postal savings into community banks. China securities regulatory commission will make a experiment on more than 10 community bank by the end of 2006.In 2006, it is obviously a important year in the course of community bank in China.Community banks have been an important part of the whole financial system for a long time overseas, there have been many researches of intension or extension, and they belong to the most important parts of financial researches. In China, the research of community banks is just at the beginning stage, most of which are barely about the concept and the characters, it is in lack of the systematic research. Depending on correlative economics theories, this article will analyse the current bank system, explore the necessity and possibility of establishing community banks, and discuss the strategic speculation of developing community bank in China, by introducing the experience and presenting the status in the U.S.Firstly, this article does a brief overview to the domestic and international research on community bank, and then introduces the definition, economics analysis and the experience in the U.S. Secondly, there is the hardcore of this article, which present the strategic speculation of developing community bank in China, including the necessity and possibility, development mode, the way to establish and property right etc. Finally, it is talking about how to design the schemes, how to build the supervision frameworks, and how to avoid the risk.