Research On The Sustainable Development Of Rural Banks

Recently,our country attaches great importance to the development of the agriculture in order to attract more funds in rural areas and continue to increase support for rural economic development efforts.Especially in the country with various means to solve the Three Rural and small and medium enterprises financing difficulties of rural areas.The emergence of rural banks has become an important means to solve this weak problem.In December 2006,China Banking Regulatory Commission on the adjustment of rural areas to relax the implementation of financial institutions since the implementation of the policy,the vigorous development of rural banks,fundamentally changed the rural financial system stock reform ideas,alleviated the contradiction between rural financial supply and demand to some extent,Enhanced the financial services of farmers and small and medium enterprises,and accumulated valuable experience for China’s diversified competitive rural financial market system.The rural bank is established in accordance with the relevant laws and regulations,which are founded by domestic and foreign financial institutions,domestic non-financial institutions and natural persons in the rural areas,mainly for local farmers,agriculture and rural economic development providing financial services.In the "Interim Provisions on the Administration of Banks and Villages",it is stipulated that rural banks should not issue loans in different places,After paying the deposit reserve,the available funds of the banks should be put into the development of the local economy.This fully illustrates the policy intention of the rural bank is to use social funds in rural areas to promote the development of its rural finance.The establishment of the rural bank marks the rural financial market reform has been changed from stock to increment.Within 10 years,its development has become an important force in China’s rural finance.At the same time,under the impact of the overall trend of economic development,the storage difficulties,balance difficulties,internal control weaknesses and talent shortage in rural banks has become a bottleneck restricting its further development,which expose the problem that market position of the rural bank is not clear,the development strategy is not clear,the risk is lagging behind,the credit system is not perfect and so on.How can the rural bank expand its space in the future to achieve its sustainable development? Based on this,it is of great practical significance to explore the implementation mechanism of sustainable development of rural banks,to expand the effective coverage of rural financial economy,to optimize the financial structure of local market,to resolve and prevent the potential risks of rural finance.Based on the development of the rural bank,this paper analyzes the status quo of the development of the bank,compares the similarities and differences with other funds,explores the opportunities and challenges faced by the rural banks,and puts forward some reasonable suggestions.Rural Banks fills the gaps in China’s rural financial development,increasingly subject to more attention.Hope that in the future development,the rural banks themselves can continue to improve the risk prevention aspects of the shortcomings to promote the healthy development of rural bank,and to serve China’s new rural economy.