Research On Development,Problems And Support Policies Of Village Banks In Shaanxi Province

As a new type of rural financial institutions，the village bank is developing rapidly in ourcountry. Also as an important part of the new rural financial institutions, the village bank isthe product of the combination of China’s new socialist rural construction and the ruralfinancial system, has been developing rapidly since March2007in Sichuan. With the furthersupport of the National Rural financial policies, the first village bank in Shaanxi Province wasestablished in Baoji Qishan，in November21,2008. Subsequently, showing a momentum ofvigorous development，village banks in Shaanxi Province have played an important role inaddressing the insufficient supply of rural financial markets. However, due to just started, itsdevelopment also faces many problems and challenges.Therefore, this article in reference to the international village bank’s development model,using the scientific research methods to analyze the background to the establishment ofvillage banks in Shaanxi Province and their development significance.This paper discussesthe current situation and the existing problems of the village banks in shaanxi province. Inorder to further understand the development of village banks in Shaanxi province，the paperused the DEA model to analyze the operation performance of village banks in Shaanxiprovince，and put forward the problems and challenges，proposed support policies.The first part is an introduction to describe the background, the purpose and significance,the ideas and methods, the innovation and a literature review at home and abroad of thispaper.The second part of the article describes the development status of the village banks inShaanxi province, mainly introduces the basic situation and business development situation.Specifically, the registered basic information, staffing and staff, profitability and businessdevelopment situation.The last is the operating performance empirical analysis, uses DEAmodel to analyze the operating efficiency, satisfaction of farmers and medium-sizedenterprises,then find the overall evaluation.The third part of the article is the development dilemma of village banks in Shaanxiprovince,including the small scale, lacking of talent, limited financial resources, service system is not perfect, preferential policy support is insufficient, lacking of risk diversificationmechanism，and so on.The fourth part introduces the successful development modes of the international villagebanks,mainly introduces the Grameen Bank and the American Community Bank models.Theyare very meaningful to our country.The fifth part of the article is to support policies and suggestions for village banks.Forexample, expanding the scale, improving staff quality, establishing a good social image,developing business innovation, strengthening policy support, establishing the risk controlsystem, and so on.