Research On Primary Problems And Countermeasures Of Village Banks In Henan Province

The development of the national economy is dependent on the healthy and stable financial system, butin the vast rural areas in China, the financial services is extremely backward, and seriously restricts therural economic development in China. Therefore, in addition to city large commercial banks, widely set upvillage banks as the representative of the new type of rural financial institutions, not only can improve andincrease the whole level and depth of the financial system, effectively reduce the systemic risk, also caneffectively solve the problem of rural credit, bring vitality to the national economy as a whole. Villagebanks while developing rapidly in recent years, but as a new type of financial institutions, due to a late start,has not yet formed the unique business operation mode, there are still problems such as not enough forgovernment support, little dots, the low degree of social recognition and risk control ineffective, but alsofaces competition from other banking financial institutions, it is both opportunities and challenges coexist.This paper is based in Henan Province, mainly adopts qualitative and quantitative, comparison andreference, the analysis method of combining theory and practice, learn from our existing theoretical results,combined with the advanced mode of foreign Bangladesh Grameen bank and Indonesia town system,analyze the current development of village banks in Henan from all the aspects concerned, and discussesthe main problems existing in the development of rural banks in Henan Province, and puts forwardcorresponding countermeasures and suggestions to promote the development of village Banks in HenanProvince.This paper is divided into five parts. The first part is introduction, mainly introduces the researchbackground, research status at home and abroad and the research significance, analyze the main ideas andinnovation. The second part is the summary of the village banks in Henan, mainly includes the connotationand characteristics of village banks, comparative analysis of the similarities and differences among ruralbanks and other financial institutions, and reviewed the development of village banks in Henan province,analysis of market positioning and the competitive advantage of village banks in Henan Province. The thirdpart is the analysis of current situation of village banks in Henan Province, mainly from the three aspects ofbusiness management, risk control and business innovation in detail research the present management situation of village banks in Henan Province, and from society recognition, the network layout, creditsupervision system and business management aspects probes into the problems in the development ofvillage banks. The fourth part is to explore the successful development model of abroad rural banks, andsums up the experience, in order to provide reference for the development of Henan rural banks. The fifthpart comprehensive above research results, combined with the situation of Henan Province, from the HenanProvince rural bank itself, policy and supervision level puts forward corresponding countermeasures andsuggestions of Henan Province.The core viewpoint of this article mainly includes: First, village banks in Henan Province has its ownunique competitive advantage. First of all, rooted in local has natural geographical advantages, can graspthe local customers all kinds of soft information, provide differentiated services, satisfy the market andcustomer’s financial needs, effectively reduce the credit risk and the operation costs. Secondly, good policyand economic environment. Construction of area of Central Plains economy makes the development ofeconomy in Henan rapid, the income of the farmers increase, investment demand increase, coupled with awide scope of Henan rural groups, more idle funds, deposits, it can effectively expand the channels offunding sources. Finally, most of the village banks in Henan Province directly controlled by the bankingregulatory commission (CBRC), small size, flexible operational mechanism, management level less,can adjust management strategy according to market changes quickly. Second, the village banks muststrengthen their management in Henan, clear their position, reasonable layout of the site settings, strengthenbusiness innovation, actively broaden the financing channels, perfect the corporate governance structure,improve the risk internal control system. Third, the rural banks in Henan Province should strengthensupervision coordination, build a reasonable policy support system, give financial subsidies and tax policysupport, promote its normal and effective operation, to better serve the rural financial market.