The Study On Restricted Factors And Countermeasures Of The Development In Village Banks Of China

In process of socialist construction, agricultural economics are the most important problem, which get the party and government concerned. It is the financial problem for modern agriculture which should be solved. At present, financial institution improve the agricultural economy by more financial services, which play an active role in promoting agricultural economics. But, relative to the city in terms of financial, we cannot deny that rural finance reform starts late, progress and many problems. The financial services in rural areas far behind the city’s financial services and cannot meet the needs of socialist new rural construction. For many years, financial service proved to be the weaknesses of socialization services in rural areas, which becoming conditioned to the development of a "bottleneck".The establishment of the village bank brought hope to the rural finance. 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.20th2006, 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 restricted factors of the village banks 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 definite the intension of village banks of our country, and compare the definition with other rural financial institutions.The third part outlines and analyses the setting up and development situation,and make a deep analysis on village banks’restricted factors. Fistanalysis the registered capital assets constructive banks, geographical distribution,and the business development of the village banks. Then summarize the restricted factors of village banks from three sides.The fourth part select representative case studies of village banks from different regions with different economic development. Then focus on the study of the successful experience of Grameen Bank and absorbs and draws fruits during the development of village banks of our country.The fifth part 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. The suggestions mainly include develop different product and corporate with the government to grasp the market orientation, create new products and service, promote supervision and self-control, give more policy support on interest rate and market access.