A Study On The Sustainable Development Of Banks In The Villages And Small Towns

At this stage, Speeding up the rural reform and development to achieve the objectives of building a moderately prosperous society is the most important task of the party and the state. The new village banks by the birth of the China Banking Regulatory Commission in December 2006, has proved to be to an innovative and effective means of ensuring the credit funds to distribute to the majority of poverty-stricken households, farmers and small businesses. And then, the new village banks can ease the difficulty in obtaining loans in rural areas and promote competition in rural financial markets, moderating the financial support for the new rural development. However, as a new thing, the village banks face with some difficulties and problems in the course of its pilot. The industries are also worried about sustainable and healthy development of the new village banks. Therefore, it has a great theoretical and practical significance to put forward corresponding ideas and countermeasures by a comprehensive, systematic and in-depth research and exploring the factors and obstacle of the sustainable development of China's rural commercial banks.This paper guides as Marx's agricultural industry characteristics and capital promoting theory, learns from the rational factors of the deepen theory, financial endogenous theory and financial endogenous sustainable development theory in West financial economics. It defines the meaning of rural banks and the characteristics, and then analyzes the current supply and demand of China's rural financial contradictions, pointing out the need and its significance for the establishment of village banks. In the end, it analyze the effectiveness of the pilot village banks and the sustainable development of the various problems, such as lack of follow-up funding, the risk of refractory, non-profit to cover the cost, as well as challenges such as financial supervision. It uses SWOT analysis to analyze strengths, weaknesses, opportunities, threats of the village banks and the balance to be achieved moderate interest rates and economies of scale. On this basis, learning from the successful experience of the Grameen Bank of Bangladesh, combined with China's national conditions, China village banks should take specific measures to achieve sustainable and healthy development:First of all, faced with the "Three Rural" problem, it should service the area farmers and clear market positioning; Secondly, it should complete the operation management mechanism, and establish a sound risk control system, strengthening of financial services and regulation. Finally, we should take a series of supporting measures, such as speeding up the process of marketization of interest rates, introduction of preferential policies to improve the credit guarantee and rating system, the establishment of agricultural insurance mechanism and the introduction of deposit insurance system.