Research On The Village Banks' Development

In recent years, the party and the country attach great importance to the agricultural andrural economic development and the improvements in living standards of the farmers. Ruraleconomic can not develop without the financial support. At present, there exist manyproblems like financial undersupply and lack of competition in our rural areas. Theseproblems have become the important factors that hinder the development of rural economic.Therefore, in the development of rural economy, we must accelerate the speed of the ruralfinancial sector reforms, innovative the ways of rural financial services, establish new typerural financial institutions that meet the demands of our rural areas, provide strong financialsupport to the constructions of new socialist countryside. The establishment of village banksinjects the new vitalities in our rural financial systems. Through four years of development,the ranks of village banks go larger. As the end of 2010, we have established more than 300village banks, and the range also gradually expanded to the all provinces of our country. Thedevelopment pace of the village banks is accelerating, and the sale of the capital is alsoexpanding. The steady and healthy development of the village banks is very important to theconstruction of our rural financial system.This article analyzes the constraint factors of the sustainable development of the villagebanks from the demand and supply aspects. And then propose some suggestions to insure thesteady and healthy development of the village banks. This article is divided into five parts:The first part is an introduction,introduces the research background, significance and researchstatus and other issues. The second part makes some introductions of the developmentsituations and the business scopes of the village banks. The third and forth part is the mainbody of the paper. The third part analyzes the demand situations of the village and the affectfactors of these demands. The forth part analyze the village banks'problems in the marketpositioning, business development and internal control through the development process. Thelast part discusses the suggestions that can promote the steady and health development of thevillage banks.