Research On Legal Problems Of Village Bank

Agriculture is the foundation of national economy; finance is the core of modern economy. It can not be separated from the effective support of rural finance for developing modern agriculture and building a new socialist countryside. Lacking of financial support for the socio-economic activities has become the "bottleneck" that constrains the economic development in rural areas. But the difficulties in financing for the farmers within the villages and towns, small and medium-sized enterprise are always the problems that the financial reform in rural areas must face. As building the new socialist rural areas of our country, the reform and development of financial market has been put on the rural financial market development agenda. Since 2006, China Banking Regulatory Commission issued the access policy for the bank financial institution in rural areas; the industrial capital and private capital are allowed to build three new banks and other financial institutions such as town and village banks. The new rural financial institutions represented by the town and village banks willed be listed as the important component of china's rural financial reform and development by the Seventeenth People's Congress and the first central document in 2009, and will be incorporated formally into China's rural financial system in order to provide more and better financial services for more than 900 million fanners. The negative impact of the financial crisis is keepping on, and it is also the new socialist countryside construction of a critical period. Therefore, how to deal with the legal issues of town bank development is the basic point of this paper.In this study, focusing on the legal aspects of village banks, first of all, the author started at introducing the basic concepts, analysising the theoretical of towns and villages banks, and summing up the basis theory of the rural banks on necessary. This study combined with the theory of the vulnerable groups, financial innovation theory, the interests and the interests of mechanism theory, theory of financial development and so on to elaborate. It is the basis of town and village banks' development theory.Secondly, focusing on rural financial development at home and abroad carried out a comparative analysis and referenced form the United States, Japan, Bangladesh and other countries' the rural financial system, summed up community banks, rural banks, micro-credit advanced experience. Analysised the development and practice about village banks of Hubei Province, and analysised the problems and reasons which in the development of Hubei province village banks from point of the dynamic view and static angle, in order to lay the foundation for the building of the legal system. Third, this paper put the specific legal regime of town and village banks as the platform, conceived a complete legal system of village banks from the specific system level, and gave some references for improving the system and specific development of village banks. Construct built from basic coverage of the objectives, principles, positioning, relationship between the co-ordination framework; the formation of the basic content from the main system of systems and procedures within an integrated and coordinated mechanism body; from operation and the protection of the mechanism level, study on the property rights system, the deposit insurance system, supervision system, benefit-sharing systems, risk prevention system, dispute resolution system; arrangements from the responsibility level, and strive to form a "four-in-one" mandatory arrangements to enable research to be in the real system of applications.Finally, seeks the specific measures that can promote the village banks to develop rationally from the strategies in three aspects of strengthening macroeconomic regulation, market regulation and sustainable development. Building Legislative system which can promote the village banks development and government regulation and control system from the macro aspects, and from the concept of respect we adopted in view of the operation of Market Regulation to promote the harmonious development of rural banks and put forward a realistic system of sustainable development.This paper hopes that through the rational research for the legal issues of town and village banks, in order to guide the sound development of the new rural financial markets and village banks for the rule of law, institutionalization, standardization can be used as reference to the countermeasures and proposals.