Research On The Present Situation And Countermeasures For Community Banks In China

Community bank is a financial institution against the most dynamic entities of the national economic system, that are small-medium enterprises, individual industrial and commercial households, residents and farmers. And its occurrence and development is the inevitable requirement of the establishment of a modern financial system. In the face of the financial crisis, China needs to accelerate the exploration and development of community banking system, which is the urgent need to increase financial support for the "agriculture, countryside and fanners" and small-medium enterprises. At present, many small and medium-sized banks in China have entered the initial stage of development of the community banking system. And rural cooperative financial institutions and city commercial banks are very close to the basic attribution of community banks. As the market economy improved in varying degrees, these banks are very different from community banks in Western nations. Thus, the further exploration of theory and practice is needed for the development of community banks in China. However, the current domestic theory in community banking system is imperfect, such as its lack of empirical research. Therefore, the study on community banks in this article will be based on the empirical analysis, in order to grasp the Chinese community banks' real development and the future prospect accurately, which is the significance and value of the study.To this end, the study was carried out as follows, on the basis of the reality of China's economic development environment and the direction of China's financial development. Firstly, this paper studied the development of community banks on the theoretical analysis with finical symbiosis theory and property right system theory. Secondly, the paper analyzed the current situation of Chinese community banks through empirical research. Thirdly, the paper proposed the corresponding countermeasures to solve the problem of system of organization and operational mechanisms in community banks, in order to provide theoretical and policy-making reference for the development of community banks in China.Based on analysis of the financial symbiotic theory, the paper gets the conclusion that the symbiotic object of community banks are small and medium-sized economic entities such as the small enterprises. Through the improvement of the external environment, an integrated, symmetrical and reciprocal symbiosis will be established between community banks and its symbiotic object, and relationship will be stable for long. Hence, accelerating the development of community banks in China can effectively alleviate the insufficient financial supply to small and medium-sized economic entities. And then the conclusion was also proved through case analysis and quantitative analysis. And in the quantitative analysis of this paper, the generalized differential transform was used to eliminate the auto-correlation between variables. Thus, the role of community banks performing can be more accurately quantitative assessed. At the same time, this article analyzed the reasons of the results in depth, as well as confirmed that community banks can promote the development of regional small and medium-sized economy, through the financial symbiosis theory and case analysis. And then the paper gets the conclusions: perfect internal systems are the fundamental development of community banks, and the support of the external environment is the conditions for the development of community banks, which are both indispensable. However, the relative maturity of the community banks focus in the coastal areas, where the private economy is more developed and the financial reform is advancing faster. On the whole, the community banks in China are in the initial stage of development. And there are many problems need to be solved, including the internal system issues of the community banks, and the external system issues. Thus, study on theory and policy is needed to promote the development of the community banks.Therefore, the article put forward three strategies about how to promote our community banks, aimed at the study of the development style, property rights of organizations, the business model and the monitoring system. Firstly, the community banks should make use of the advantages of different financial model, to form the complementary organization of community banks with multi-level. Secondly, improve the internal systems of banks through a rational system of property rights, heterotypic market positioning strategy, effective incentive and restraint mechanisms and rigorous risk management. Thirdly, establish the full range of financial regulatory system, with the base of the internal control system, the core of full-time monitoring system, the complementary of self-regulatory organization of community banks and social supervision.