Study On The Legal System Concerning China's Market Access For New-type Rural Financial Institutions

Finance capital is the key factor in stimulating the development of rural economy. The ineffectiveness of rural financial market demands the government's active intervention in rural financial market. The transition of rural financial theory reflects the change of government's role in the function orientation of rural financial development. Imperfect market paradigm should become the instructive theory in the rural financial development of China. This requires setting some conditions in the permission legislation of rural finance, such as choosing the qualified and appropriate subjects into the market. In this way, it can achieve the goal of keeping the market stable and avoiding excessive competition. Market failure provides a basis for governmental intervention, but that intervention isn't universal and the possibility of governmental failure also exists. In order to promote the government's function in the development of rural finance, the government behaviors should be restricted reasonably, and it is necessary to orientate its function in accordance with the law. This requires establishing open and transparent permission conditions and programs, and it also requires defining the responsibilities and rights of supervision institution in permission supervision, to standardize the governmental behaviors.The general aim of permission supervision in rural financial market is to safeguard the financial stability, and it is achieved by choosing the qualified into the market and keep the appropriate competition in rural financial market. The special aim of permission supervision in rural financial institutions is to set up the rural financial system which is suitable to the needs of rural fund, and the sustainable development of rural financial institutions. The objective pluralism of permission legislation in new rural financial institutions leads to the conflict of goals, which needs to establish the coordination mechanism in goal conflict.As the importance of banking business in state economy, each government always takes approval measure. According to the specialty of rural banking and the particular function of rural financial institutions, each country adopts different establishment principle of rural financial institution. The establishment principle of new-type rural financial institution in our country is the doctrine of approval, which restrained the effect of wide-admittance policy in rural finance. Our country should learn from foreign countries and draw on their experience, and establish various establishment principles to rural financial institutions combined with practice.The new policy of rural finance has some discriminatory restrictions on non-bank capital buying a share in commercially financial institutions, which leads to some negative consequences. Eliminating the discriminatory regulations of non-bank capital, it may cause some risks, such as the risk of excessive competition and correlation loan, the risk caused by insufficient capital scale, the risk of insufficient experience in operation and management, the risk of paying excessive attention to self-return and ignoring social benefits, and the inefficiency in supervision power。To eliminate the discrimination against non-bank capital, the corresponding dissolving mechanism should be set up, such as restricting mechanism in subject qualification, mechanism in minimum capital requirement with disparity, control mechanism of correlation loan, financing mechanism of commercial banks to rural financial institutions, innovating supervision measures and the control mechanism in the outflow of surplus capital from rural financial institutions. The new policies of rural finance also have some disadvantages in regulating the membership in the Rural Finance Cooperatives, it needs to be perfected.The basic function of registered capital is to protect the function of creditors, scale economic effect and market regulation。The function of registered capital differs in different types of rural financial institutions, as well as in the same institutions of different areas. So the adjustment of registered capital quota should be based on different types in terms of locality, and adopt different standards of registered capital.The effective operating of enterprise administration can not be guaranteed just by establishing and improving organizations. A perfect operating structure also needs to guarantee the incentive, supervisory and balance mechanism in effective operation of enterprise organization. It requires clear property right, reasonable property right structure, sound exit mechanism, orderly participation of relevant stakeholders and proper management mechanism. The property right of new financial institution is relatively clear, but new institution also has some disadvantages in property right structure, participative governance of relevant stakeholders and exit mechanism. And those problems should be solved in the light of concrete conditions. As commercial financial institutions, rural bank and finance house have no problem in the management mechanism of rural credit cooperatives. The administration of rural mutual cooperatives still doesn't have the problem of management mechanism. But according to foreign experience, they should follow the associated road to promote the development of the Administration of Rural Mutual Cooperatives. So it is necessary to design appropriate permission mechanism in associated agency, and avoid the problem existing in Rural Credit Cooperatives.The main body of establishing the internal control system is financial institution, but the efficiency of this system is important to the stability of financial institution and the whole financial system. In order to maintain the stability of rural financial order, it is necessary to make the establishment and perfection of internal control system as the important content of admittance regulation. Taiwan has such legislation in this aspect. The supervision institution can publish'Guidelines in the Internal Control of New Rural Financial Institutions', which will provide guide to establish internal system for each institution, and also strengthen the pertinence of admission control.