Village Banks-China's Rural Financial Development In The New Selection

Resolve the problem of the agriculture, rural development and farmers, are the work of the party and the country's center of gravity at this stage, and to accelerate rural financial reforms, improve the rural financial system, and continuously building a new socialist countryside to meet the financial needs of our country are also the key to financial reforms. The "Government Work Report" of Premier Wen Jiabao at the Fifth Session of the Tenth National People's Congress stressed that to construct a new socialist countryside, we must focus on developing the rural economy and on increasing the income of peasants,and constraints the "three rural development in rural areas the majority of the bottleneck is the shortage of funds. At present, the majority of the banking financial institutions in rural areas with low coverage network, supply, competition, inadequate financial services in rural areas lagged in the "three rural" development needs. In support of the new rural construction, and promote investment in rural areas, the formation of multiple types of diversity, covering a comprehensive, flexible management, efficient service rural financial service system, China Banking Regulatory Commission have been at the types of institutions, capital substantially relaxed restrictions of access to rural financial institutions policy, which gave birth to a number of new village banks and other financial institutions. This had a positive impact on the activation of the rural financial market, improving the rural financial system and improving financial services in rural areas. Village banks as the new joint-stock and small banks, mainly in loans as a source of profit, followed by "profit-making, security, mobility," as the principle to sevice the "San Nong",and its development from the Grameen Bank in Bangladesh.In this paper,the theoretical basis is the Western Economics of rural financial development theory, through the analysis of the current law of China's rural financial system, and the use of scientific research methods, building on the background of village banks and its significance of financial development in rural areas of our country.On this basis, discussing the current development of village banks and the problems faced by it. Grameen Bank of Bangladesh as a successful model on villages banks has a very good reference to our village banks's development, I also do some analysis and research for it.I also make a number comments and suggestions for our village banks through the understanding of village banks in China combined with the problems of our country,Finally, I make some development prospects of the future for our village banks towns.The full paper includs three major components: introduction, body and conclusion, a total of five chapters.Chapter 1, Introduction. First of all, describe the background and significance of the topics, and then describe the idea of this paper, the study methods and research methods,finnally introduce some innovations of this article. Literature Review is divided into two parts, the first part is the theoretical basis for the building of village banks, that is, the three rural financial theory: the financing of agriculture, rural financial markets and imperfect competition on the market theory; the second part is the China's current rural financial system.Because the current financial system in rural areas can not meet the demand for the building of new socialist rural areas,so the birth of village banks have extremely important significance.Chapter 2, the background on the establishment of village banks and its impact on the rural financial development. This chapter is divided into two major parts, the first part is the background of China's village bank's set up, describe it mainly from rural areas of the financial needs of the characteristics, structure and prospects for development in rural areas.The majority of the rural areas of China's financial structure needs and features makes the birth of village has broad prospects. The second part of this chapter focuses on the positive significance of the establishment of village banks. It not only promotes China's rural financial reform to a new stage and inject fresh bood for the development of rural finance ,and also promotes competitive 's financial markets in rural areas to some extent.Chapter 3, the development of village banks and the problems faced by it. The establishment of village banks in Sichuan, Inner Mongolia, Gansu, Qinghai, Jilin and Hubei is the beginning of our village banks, and now has expanded to most provinces and cities in China.As new things village banks must have alot of problems in the running, this chapter has done on this.The problems of village banks can be said to from all aspects, and for each of village bank is likely to face different problems, I only choose some representative problems to describe.Chapter 4, China's rural banks can learn from the success of Grameen Bank in Bangladesh.Bangladesh Grameen Bank as a successful model for rural financial services, there are many places where we could learn from. The success of Grameen Bank in Bangladesh has its special reason including the special conditions, the operation of systematic principles and a number of other factors, such as business philosophy.Its success changes some people's perspective for poor economics, makes the poor borrow money very easy in the bank.Although we have different national conditions, but we can alse learn many from the success of Grameen Bank in Bangladesh.Chapter 5, comments and suggestions for our village banks and the prospects of it. This chapter is on the basis of Chapter 3 ,based on a number of problems of our village banks, in the corresponding make some suggestions.Governments and regulatory authorities has always very strict supervision on the financial institutions, it is also due to village banks, although to some extent can give some preferential treatments and cares, but the regulatory authorities should not take lightly for it, or it is not conducive to their healthy development.Finally make some development prospects of the future for our village banks towns.