Research On The Village Banking Institution Of China

As the most important elements of capital allocation system in the rural economic development, rural finance has become increasingly significant. However, our present level of development of rural financial point of view is far from meeting the needs of rural economic development, the performance of financial development for the urban-rural imbalance in the financial characteristics of the dual structure is very prominent, and rural finance has been severely marginalized farmers financing difficulties is serious, resulting in a serious lag in rural financial development, supply and demand has become an increasingly serious. Therefore, how to speed up rural financial development, the solution to China's "three rural" issue focus of the most important.Finance as a virtual economy whose nature is a system tool is designed to reduce the transaction costs of the real economy. Regarding to issues about the importance of the financial system on financial development, Gulli(1998) argued that the greatest contribution to poverty reduction is neither possible loans nor savings, but to establish a sustainable financial mechanism. Modigliani and Miller suggested that the real impact of economic development is on the basis of the financial structure behind the system.This paper argues that China's rural financial development has inherent institutional, not simply finance problems, more changes should be in the contents of the system. From the perspective of historical rural financial development, although the country lags behind for rural financial development issues have also taken a series of reform measures, aiming to change the plight of rural financial development, however, all the reform measures limited to the repair within the existing financial structure, and were not in accordance with the principle of market economy, according to changes in the external economic environment, to develop rules to achieve financial functions, systems and other specific financial shape, and to optimize the financial structure, has not been resolved the core issues of rural financial development, the so-called core is the support of the rural financial system foundation for sound development. Therefore, this paper argues, the simplistic view that financial development in rural areas lag is due to the low level of economic development in rural areas with risk, or that is only suitable for rural financial policy financial or non-cooperative financial ideas are one-sided. Slow development of rural finance issues, should not be confined systems and institutions "surface issues", should be created to explore the underlying causes of the problem, that is to be transferred to the deeper levels of "system level" to find the reasons why.Was born in 2007 as a financial system arrangement in rural financial system for the most vulnerable farmers, the occurrence and development of village bank was indispensable to China's economic development and rural financial system reform in the new historical period of inevitable requirement with the times of institutional change and innovation requirements. Arrangement of a system is feasible in theory, does not mean that implementation must be able to achieve good results after, "should be so" does not mean "is it real." As determined by the specific historical conditions of special reform initial conditions and gradual reform characteristics, the system of China village bank is a very inadequate supply environment was built and developed, exploration and development of China needs to expand village banking system, which needs economy in theory and practice is to make early preparations for the Chinese banking system development in the next village to provide a more systematic practice, the rich explanatory power of theoretical guidance. Take this opportunity to the main contents of this paper is concentrated in two areas:from theory to explain China village bank "should exist" and the village bank, "How can there be" issue.This village bank for the institutional arrangements of China theoretical and practical problems, fully absorbs and learns in both domestic and foreign research findings. With comprehensive utilization of comparative analysis, specification analysis, system analysis and other analysis methods, this paper obtains the theory foundation and vitality of village bank and solves this issue on a better survival of village bank in two ways (the core institutional arrangement and the external restraints). All of these are aimed at offering some suggestions for the booming village bank. This paper consists of three parts of seven chapters.The first part (Chapters 1-2):This section sorted the village bank's research results and recalled that village banking system theory to explain "why there" and pointed out that the existing studies focus on one area, the lack of a real analysis of the entire China-based framework and a common thread of the various local research into a complete logic, the basis for village banking system and the external conditions research is even more rare.The second part (chapters 3-4):This section discusses the origin of the Chinese system of village banks, institutional change and institutional deficiencies, Explained from the theory and practice of China's development towns necessity and rationality of the banking system and banking system from Bangladeshi towns and villages to seek China's comparative analysis of institutional change in the direction of village banks.Chapter 3 of the system of village banks in China origin, institutional change and institutional shortcomings, empirical analysis of the village bank in the Chinese banking system, the position and role, discusses the development of rural bank status and problems.Chapter 4 describes the system of the Grameen Bank of Bangladesh origin, institutional change and institutional features, and discusses the development bank Grameen Bank Status, challenges and future trends of China and Bangladesh village bank institutional arrangements and institutional environment for comparison analysis to find out the difference between the two, to reveal changes in the direction of village banking system.The third part (Chapters 5-7):Bank of China's villages and towns around the "how to survive" problem, from the property system, corporate governance system and institutional environment, and discusses the changes in China's rural bank system requirements, and make relevant policy recommendations.Chapter 5 from the bank property system and the relationship between corporate governance banks starting analyzed the core of China's rural bank system arrangement, the village bank in China several key micro-institutional arrangements are analyzed, including the governance structure, market positioning, incentive and restraint mechanisms, and risk management analysis.Chapter 6 discusses the development of China's villages and towns outside the banking system environmental requirements, the main analysis of the social credit, deposit insurance system, financial supervision of the village banks and future development.Chapter 7 Conclusions.