Study Of The Mode Of Development Of Rural Community Banks

Community banks originate from foreign countries and their features are as the follows: small range, serving the residents and enterprises in community, and being built and operated according to the market principles. All these basic characteristics make the community banks able to effectively solve the information asymmetric problem in the credit, help small and medium-sized enterprises and farmers out of financial difficulties, and provide diversified financial services for the community residents. At present, in the Chinese new socialist countryside construction, there exist series of problems, like the financial dual structure and rural financial restraint and so on. To promote the development of rural community banks is an effective way for dealing with parts of the existing problems. Now the towns and villages banks are the practice forms of community banks in the rural areas. People lack of comprehensive understanding of the rural community banks whose representative are the towns and villages banks, particularly lack of deep studies on the specific issues in the practice of the rural community banks, because of the insufficient time and small number of the practice. Therefore, it is of great significance to optimize the structure of property rights, standardize the management of banks and provide theoretical references for rural community banks in accordance with the requirements of modern financial enterprise system.Guided by the theoretical framework of New Institutional Economics, this thesis theoretically analyzes the market advantages, the development prospect, and the benefits distribution of rural community banks by using the transaction cost analysis and games analysis. Compared with and learned from the mode experience in development of foreign rural community banks, the thesis studies the key issues, such as development path, property rights, and regulation etc, from the angle of mode creation, and proposes relevant policy suggestions. Based on current domestic practice situation of towns and villages banks at home and learned from the beneficial experience of oversea rural community banks development, the thesis defines the functions and the trading cost advantages of rural community banks and discusses the available path and system plan of rural community banks development in China. It makes a conclusion that the development path should be based on the different economical development situation in different areas. That is to say, in developed areas, the establishment and reconstruction can be done simultaneously. While in less-developed areas, the establishment should be the first and main issue. And the implementation of the path needs the market and the government's cooperation for creating a market-leading and government-promoting mode. For the property rights system, in the developed regions, the rural community banks should adopt the joint-stock system, while in the less-developed areas they can first adopt joint-stock cooperative system, and gradually be changed into the joint-stock system. At the same time, it is necessary to enhance our rural community banks' access and withdrawal system design and strengthen the business supervision to promote the sustainable development of rural community banks.