Research On The Legal Promotion Mechanism For A Community Bank

Community banks are small private banks of setting up and operating in accordance with market principles in a certain area of the city or in rural areas.Small and micro enterprises and residents in the region are their service targets.They are characterized by centralized service object, small asset size, flexible financial services and low information cost.Don’t be confused with our existing policy banks, credit cooperatives, other commercial banks,community branches, small and micro branches.They have a big difference.Legal promotion mechanism for community bank is of important significance to solve the financing difficulties of SMEs, improve Chinese financial system and develop an inclusive financial.At present, our country has established related financial legal system,deposit insurance system, the foundation of social credit system and the basic framework.However,there are still some questions: lacking of government support, the risk control ability not strong and supporting legal system imperfect etc.Practices of community banks in the United States,Japan,and Bangladesh show that full government support, a sound risk prevention mechanism and a complete financial legal system are necessary.Based on domestic and extraterritorial learn,the legal promotion mechanism for community bank should improve form the following aspects:tax incentives mechanisms;the use of re-lending, deposit reserve ratio and other financial policies;establishing a risk compensation mechanism and loan insurance system;further improve the social credit system; from the organization access, business access and personnel access to improve access system of community banks;establishing market exit mechanism; predigesting community bank supervision.