The Research On The Loan Transaction Of Small And Medium-sized Enterprises Of Village Banks

As a large agricultural country, China’s agricultural sector of the economy promotes the development of the national economy as a whole. The agricultural sector not only for the state-owned economy, a large number of agricultural surplus transport of low-cost labor and other resources, but also for other sectors, promoted our country’s urbanization and industrialization process. However, the agricultural sector has not obtained inputs whom contribution match, especially in the rural financial sector. Backward rural financial development level as China, as the worlds second-largest economy continued to force constraints. Village bank is a kind of rural financial institution which is newly founded in recent years, the purpose is to effectively solve the "san nong" problem in our country, in order to be a foothold in the rural market and meet the demand of local farmers, small and medium-sized enterprise financial services of new rural financial institutions, promote the reform of rural financial institutions,by "relationship lending" to provide funds for the development of local farmers and small and medium-sized enterprises,it solved the problem of loan in medium-sized enterprises to some extent, particularly in rural area. But the development process of rural banks is less than ten years and therefore the cooperation between the rural banks and local medium-sized enterprises is incomplete. Namely, we should explore the underlying causes in order to establish our friendly and cooperative relations between them.This dissertation is divided into seven parts. The first section of this article expounds the background and the significance of this research topic, literature review, the methods and ideas of this thesis. The second part introduces the concepts of rural bank, including the definition, the scope of business, the comparison between rural bank and other rural financial institution,so as to highlight the uniqueness of village Banks, at last,I introduce the development history of rural banks,in terms of this, the main way is using the “small and medium-sized enterprise loan balance” to show the develop speed of loan business. The third part analyses the merit and demerit of loan business. The fourth section points out the major problems existing in loan business operating mechanism in rural banks. There is a foreign successful case about this issue. Compared with the Bangladesh’s Grameen Bank and American Community Bank, Chinese rural bank should learn the advanced experience from the foreign banks. The sixth part is based on rural and community bank reference, respectively from the government, employees, operation mechanism, business philosophy and business processes to relevant corrective countermeasures are put forward. The last part is summary and prospect of this thesis, including listing the research of this paper and make a prospect to the future.Along with the development of village Banks, the small and middle enterprises loaning business will appear more and more problems, so the futural developping strategy should be based on a clear market positioning. We should draw lessons from foreign successful experiences and accord with Chinese actual conditions, especially the special situation in rural areas at the same time so as to put forward constructive countermeasures and suggestions.Village bank, small and medium-sized enterprise, loan business...