Research On The Established Strategy Of China Rural Community Banks

At present, our rural financial system is still based on the structure of policyfinance (Agricultural Development Bank Of China)、cooperative finance(rural creditcooperatives、rural cooperative banks), commercial finance(Agricultural Bank OfChina、 rural commercial banks). In this structure, the supports of all kinds offinancial institutions to our rural economic are not enough. And emerging of theestablishment of village Banks did not make the rural financial institutions systemperfect, deviated from the orbit of serving "agriculture, rural areas and farmers",village Banks did not achieve the ideal effect which many people have expected.Rural financial system is the guarantee and the important force to promote thedevelopment of agriculture, whether the rural financial institutions system is sound、suitable and efficient will directly decide if our country food security is guaranteed.The author put forward the idea of establish rural community banks by upgradingthese following institutions: the small loan companies which have run successfullyfor years; non-profit microfinance institutions and rural capital logistics dispensingcenter. The proposal of this point of view is significant for the upgrade of existingrural microfinance institutions, and the transformation of ADBC. Meanwhile it isalso important to effectively mobilize private capital and realize the diversificationof rural financial institutions.The main objective of this study is the establishment of rural communitybanking system in China. Take the defects showed up in the set up of village Banksas a starting point, combining the successful experience of foreign community Banksestablished, development, to discuss how to set up our rural community Banks whichon one hand, could in accordance with China’s national conditions and on the otherhand could effectively promote the development of the rural financial system. Theagricultural development bank of China was discussed from the perspective of thesponsors from the necessity and feasibility way. From integrating existing rural small financial institutions; designing the property rights and governance structureconditions, to ensure the smooth implementation. Eventually set up a set of ruralcommunity banks in the banking system.