Research Of American Community Banks And Its Enlightenment To China

Since reform and opening-up, China’s economy has experienced a rapid developmentperiod, so dose the financial industry. But in the economic development process someprobolems that need urgent solutions. First of all, the difficulty of financing of small andmedium-sized enterprises becomes the bottleneck of the development of SMEs. Second, thereform of state-owned commercial bank withdrew outlets in many rural andunderdeveloped areas. This leads to insufficient supply of financial services in these areasand exacerbate the imbalance of regional economic. Learn from the American experience,the development of small and medium sized banks such as community banks is an effectiveway to solve these problems. US banking system contain a number of community banksand a few super-banks, community banks play an important role in the banking industry.Community banks are important providers of financial services to small borrowers, and theAmerican community banks usually distributed more in rural and underdeveloped areas,making an important comtribution to the development of specific regions and industries.This paper starts from the concept definition and characteristics of community banks,introducing the definition of community banks of foreign and domestic scholars. Andcommunity bank’s characteristics and relatively theories about competitive advantage aredescribed. Secondly, it introduces the current situation of American community banks andthe operating state. Again, analyzes the role of community banks in the US financial system,and its role mainly in financial support for small borrowers, the financial support for theeconomic development of the regional economy and the balanced development ofunderdeveloped areas, as well as the monetary policy transmission channels at thegrassroots level broadening. Combined with our existing problems in the financial system,analyzes the necessity and feasibility of the development of community banks. Finally, interms of the development of community banks in China, the paper proposes some issuesthat should be paid attention to.