The Study On Internal And External Restricted Factors Of Village Bank's Development

Finance supporting the new socialist countryside construction needs the sustainability of an open,regular,competitive diversified rural financial system. In order to solving the problem such as low financial institution coverage,scarce finance supply,inadequate competition, our country started new pattern financial institution experimental units at the end of 2006,the village bank has became the dominant strength of the new pattern financial institutions. Until beginning of November 2008 there were 46 village banks starting businesses. The appearance of village bank has made an positive impact on animating rural financial market,consummating rural financial system,setting up the new channel of rural financial supplement and improving rural financial service. But as a newborn thing, it is inevitable to meet various problems during the experiments, and it is restricted by internal and external factors. Recognizing the internal and external restricted factors during the development of the village bank can accelerate its sustainable growth and fulfill vital functions.The article consists of five parts. The first part starting with the setting background of village banks, defines the nature and compares it with the other rural financial institutions; the second part outlines and analyses the setting up and developing conditions of; the third part makes a deep analysis on village banks' internal restricted factors, figures out the problem such as deviating market position,small operation scale,high operation cost,lock of business innovation are the main internal restricted factors; the fourth part analyses the external restricted factors form policy support,supervision,rural credit system construction,degree of social sanction; the fifth part gives some suggestions on forenamed restricted factors to improve the village bank's developing ability and reform its external environment.