Comparative Study On The Development Of Small And Medium Financial Institutions In Developing Countries

The imbalance of economical development is a universal phenomenon in developing countries. There are three disparities in China, namely urban and rural disparity, east-west disparity and income disparity. To eliminate regional difference and shrink the income disparity is extremely essential for China to construct the comprehensive well-off society and the harmonious society. Since small and medium financial institutions can play a vital role of solving mid- and small-scale enterprise financing, developing rural economy, alleviating poverty and shrinking the disparity of region economy. It's necessary and urgent to study the successful or failure case about the development of small and medium financial institutions in foreign countries, particularly in developing countries. The dissertation employs the system analytic method, that is, consider the small and medium financial institutions as a sub-system of the whole financial system, and discuss its issues within the system frame. From different level or in different angle, the international comparisons of its structure and function evolution and its relations with the peripheral environment have been taken so as to find the essential rules of the development of small and financial institutions.This research work is innovation and strongly valued in practice, the methods employed are also systematic, scientific and comprehensive. The research first constructs a comparison research frame under the system model. Then comparatively study each factor in turn according to the content of this frame. By using the systems science theory, the dissertation analyzes the systematic natures of financial intermediary development, the microscopic composition of financial system, the levels of its structure and its integrity function emerging from the system, and argues that financial development should be overall system evolution with financial institutions as their linking intermediary, namely comprehensive progress and coordinated development of all related essential factors, including financial function, financial structure, external environment and so on. After the systematic analysis on the entire financial system, the particularity of systematic study the development of small and medium financial institutions are put up such as different service objects (local residents, mid- and small-scale enterprises and local authorities), relatively smaller scale, the worsen external environment and different macro and micro economical functions etc.With small and medium financial institutions in developing countries as the research object, the dissertation explores the evolutions, the characteristics and the issues of the small and medium financial institutions in some typically developing countries (area) such as Philippines, Indonesia, Taiwan, South Korea, Brazil and India, comparatively studies their organization composition, operation mechanism, basic rules of the development, and the restricts like social history condition and economical financial environments. Moreover, some typical cases are chosen and discussed from the various developing countries in order to sums up their experiences and lessons which will give China some inspiration and guild on how to develop small and medium financial institutions.From the angle of system internal structure, the dissertation comparatively studies all kinds of structures of small and medium financial institution system, including regular and the non-regular financial structure, different type structure, the market structure, the spatial structure and their various effects, eg. exterior effect, internal effect and so on. Also, in order to find some successful expriences on the governing mechanism, it comparatively studies the governing structure and operation mechanism of all kinds of small and medium financial institutions including small banks, credit cooperatives, small policy banks and microfinance, mainly exploring their equity structure, the relationship of the clients and agency, their incentives and restraints and so onFrom the angle of system external environments, the dissertation comparatively study the economic, legal and social culture environments of the production, movement and development of small and medium financial institutions in developing countries. The economic environments are observed from macroscopic and the microscopic angle. According to the level of economic development and the area size, the developing countries are divided into three types, namely high income industrialization and small sized countries or area (South Korea, Taiwan), medium income and small sized countries (Philippines, Indonesia) and medium income and large sized countries(India, Brazil), and then comparatively studies the economic logic, models and evolutions of the survival and development of small and medium financial institutions under different economical body background.In comparison of policies and law environments, there are two types of the international comparison and the classified comparison. The international comparison proceeds with the related legal system of market entry, supervision and withdraw of financial institutions in the selected countries (area) like South Korea, Taiwan, India and Philippines. The classified comparison proceeds with legal supervising and managing system of small banks, policy financial institutions, credit cooperatives and microfinance. Finally experiences and lessons are summed up to give some enlightens and guild.Finally, Based on the above analysis and the successful expriences in developing countries, the dissertations presents the path for small and medium financial institutions development in China, that is, optimizing the structures of small and medium financial institutions, promoting its functions and the strategies of improving its external environment after analyzing the current situations, the constitutive flaw, the poor governing mechanism and imperfect legal environments.