Research On The Legal Issues In Private Capital Entering Rural Banking

It's rather difficult for peasants and rural middle-and-mini corporations to raise funds in China,which has been a bottleneck to its rural economic development.With the reformation of China's rural financial system,withdrawal of state-owned banks from rural areas results in the monopoly of rural cooperatives,which can hardly improve its efficiency.The malpractice of rural credit cooperative is concerned with local government and local economy as well as complex local relationship. In order to handle rural banking problems such as limited branches, adjustments had been made by China Banking Supervising Committee at the end of 2006 to ensure absorption of foreign capital and private capital. Private capital is also encouraged to establish rural banking organization.On the other hand,a variety of limitations are set to introduce private capital to rural banking,which would dampen its enthusiasm.This paper discusses major legal problems aroused in the introduction of private capital to rural banking by means of demonstration and comparison analysis.It consists of five parts:At frist,this article started with the basics of the folk capitals which entering the rural banking,at present,The reality of China's rural financial pressure is the causation of the folk capital how to enter the rural banking, the folk capitals to participated in China's rural banking activities started very early,After many year's practices,there has both Advantage and shortcoming,the freedom,equality,security in the jurisprudence and the Supply and demand theory,Path dependency theory,Competitive market theory and game theory is the theoretical basis for folk capitals entering the rural banking.The second part analysised the way and the system of the folk capitals which entering the rural banking,considered that our folk captials enters the rural banking should extend by polit in the polit.Allow the rural banking financial institutions of entirely private capital being set up,the country should guide the folk capitals really enter on the premise that to ensure safety and high efficiency.At the same time private capital entering the rural banking should be taken organizational structure system of Single Banking System to ensure financial security.The third part described the investor of entering the rural banking, analysised the competence of rural banking's investor in the law and considered that the country should softening of terms,providing the opportunity develop the private capital.The fourth part analysised the presumalble risk of the folk capitals entering the rural banking.And offered proposals for fostering the business culture's progress and fostering the supervision on private capital approving,operating.The last part Described the folk capital's sustainable development of entering rural banking.Analysised the existing circumstances of insititution in the rural banking,at last this article offered proposals for realizing the sustainable development.