On The Improvement Of Legal Systems For Rural Bank

Ever since its first launch, rural bank, one of the new types of financial organizations inrural places, has rocketed in China. Rural bank emerged as a response to the state goal tocoordinate the development between urban and rural places, to promote the construction ofnew countryside and to serve agriculture, rural places, villagers and small-sized enterprises.As a special commercial bank, rural bank is both policy-and profit-oriented. Due to itsparticular role in China, rural bank has become the main force in reconfiguration of ruralfinancial market, not only meeting the many small farmers, township and village enterprisescredit demand, while also providing abundant capital support to the economic development inrural places. However, multiple issues began to arise as rural bank rapidly grows. Sufficientmental support to further development of rural bank, especially the institutional innovations,is absent due to lack of systemized research and study. Hence, to propose recommendations toimprove legal mechanisms in rural bank in a systematic manner so as to create a benign legalenvironment for its sustainable growth is of supreme theoretical and practical significanceWith a view of financial security, apart from introduction and conclusion, this paper isdivided into four parts:The first part introduces the general conditions of rural banks. On the basis of relevantlegal legislations, this part first gives a definition of rural bank and eventually shows its hugefunctions following the categorization of its features.The second part is mainly about the status quo of legal systems in rural bank andexplores the roots of its very existence in a deep manner. The sustainable development ofrural bank is hampered due to flaws in legal system. Therefore, an authentic reason should belocated by relying on realties in a serious way.The third part is to analyze and borrow advanced experiences from rural banks in foreigncountry. Similar to China, Bangladesh is a developing country, but it has a far more developedrural bank system compared to China despite the fact that China’s economy is much moresophisticated. Thus, China should fully consider the basis of the practical circumstances thenlearn from the experience in Bangladesh, especially for rural places in mid and western areas.The fourth part is the core idea of the whole paper. It proposes suggestions to improveseveral important legal systems, include the legislative concept, set up the path, the regulatory system, supporting system, the internal control mechanism, the Rural Banks of foreigninvestment. This part recommends to improve legal systems in rural banks from differentangles by combining the foreside analysis with research fruits from home and abroad, whilealso referring to successful experiences in foreign country and practical issues in China.