The Study On The Legal System Of Corporate Governance Of Rural Bank

In order to promote the economic development of rural areas,in 2006,the CBRC issued the several opinions on adjusting and relaxing the access policies of banking financial institutions in rural areas to better support the construction of new socialist countryside,which is the first time that the term “rural bank” appeared in the public vision.Then,in 2007,the first rural bank came into being,which launched the first shot in the development of rural banks,and also got the positive response from the society,after 13 years of development,it sparkled a brilliant light.As a very important legal person banking institution in the areas below the county level in China,since the pilot cultivation work was started in 2006,the rural bank has developed rapidly,and has become a “micro bank” with large number,small scale,regionalization,serving the most basic level of customers and outstanding characteristics of supporting agriculture and promoting agriculture,It has played an irreplaceable role in implementing county-wide inclusive finance,helping targeted poverty alleviation,and serving agriculture,rural areas,and farmers.However,with the rapid development of social economy and the rapid growth of scale,the disadvantages of rural banks have been highlighted.For example,under the main development bank system,there are many problems,such as high concentration of equity,imperfect organizational structure,and unscientific and reasonable means of risk prevention and control,The main reason for these problems is that there are defects in the current corporate governance mechanism of rural banks.Therefore,how to build a scientific,reasonable and feasible corporate governance mechanism of rural banks is an important issue to ensure the healthy operation of rural banks.This article will take “The study on the legal system of corporate governance of rural bank” as the topic,based on the current situation of rural banks corporate governance in China,take the problems existing in rural banks corporate governance as the starting point,combine the high-quality experience of similar foreign financial institutions,and explore a scientific and reasonable rural banks corporate governance system.First of all,from the basic theory of corporate governance of rural Banks,this paper introduces the relevant concepts of corporate governance of rural Banks,namely the concept of rural Banks and the concept ofcorporate governance.The concept of village bank is introduced from three aspects: definition,characteristics and legal nature.The concept of corporate governance is introduced from two aspects: definition and research object,It also explains the main characteristics of the village bank and the differences between the village bank and the general commercial bank,highlights the problems that should be paid attention to in the corporate governance of the village bank,And put forward what advantages will be brought to the development of rural banks if the corporate governance of rural banks is improved.Secondly,summarize the current situation and problems of corporate governance of rural banks in China,For the current situation of the corporate governance of rural banks,it mainly focuses on the relevant laws and regulations system,the equity structure,organizational structure and risk control in the corporate governance of rural banks,and finds out the problems,For example,the legislation is not perfect due to the lack of authority and pertinence;the ownership structure is highly centralized due to the main bank operation system;The unreasonable organizational structure of corporate governance caused by the relevant regulations and the actual situation includes the problems of the establishment and performance of directors(board of directors),supervisors(board of supervisors),senior management and special committees;the insufficient anti risk ability of the company;the absence or failure of the incentive and restraint mechanism.Thirdly,based on the notice on the pilot work of investment management type rural banks and "multi county and one bank" type rural banks issued by CBRC in 2018,the first investment management bank in China was introduced,and its advantages and great significance of the reform were found.Then,by comparing the foreign rural financial institutions similar to our country's rural banks,mainly around the American community bank,Australia's Bendigo community bank,Bangladesh's Grammy bank three countries "rural banks",through the research to find out what we can learn from.Finally,from the perspective of relevant legal system,equity structure,organizational structure,risk management and incentive and restraint mechanism,it puts forward suggestions to improve and ensure the sustainable development of rural banks.Rural banks belong to the financial companies.If they want to develop healthily and sustainably,they can't do without perfect corporate governance system.In order to keep theirvitality and play an important role in supporting agriculture and promoting agriculture,we must attach great importance to the corporate governance of rural banks.