Analysis Of The Problems And Countermeasures Of Rural Banks In China

With the deepening of reform and opening up, the financial reform of China has achieved someprogress. As an organic part of the financial system, rural finance is in the forefront of reform andinnovation. The ability of rural financial institutions for serving “Problems about Agriculture, Ruralareasand Peasantry” is being strengthened constantly, and the development of financial products and servicemode of rural innovation also makes the rural financial institutions more in accordance with therequirements of "Problems about Agriculture，Ruralareas and Peasantry ". Village bank is a leading force inthe new rural institutions. It has played a very powerful supporting role for the new rural construction andthe coordinated development of urban and rural areas. It also does good to the agricultural production andfarmers income.After five years of development, the village bank team is constantly growing. As of the endof2011,242of the country’s banking financial institutions have established726rural banks. It expandedfrom six original pilot areas to all provinces in our country.the rapid development and the scale of capitalare continued to increase. But the existing issues in the development of village bank are gradually exposed.The paper has studied on the development of the village bank and analyzed the problems and causes ofrural banks in the process of development, and put forward the countermeasure and suggestion in order tomake sustainable development of village bank.This paper is divided into five parts. The first part introduces the research background and significance,and analysises the domestic and foreign research status and results. The second part introduces the concept,the characteristics, the scope of village bank. The third part analyzes the current situation of thedevelopment of rural banks in China, and with the development of Baofeng Yufeng village bank as a case,points out the existing problems and reasons of China’s rural bank. The fourth part draws on the successfulexperience of foreign rural bank, geting on the construction of China’s rural banks from. The fifth part putsforward to ensure sustained and stable development of rural bank countermeasures and suggestionsaccording to the above questions and reasons.