Research On The Survival And Development Of Rural Banks

Since the reform and opening up, the rural financial reform has made great achievement, but it is still the weakest point in the whole rural financial system. The slow growth of peasant income, the shortage of financial supply and financial institutions are the problems in the rural areas. The major financial institutions, like a large absorber, absorb the financial resources from the rural areas to the urban areas which devoted more profit than the rural areas. This "siphon phenomenon" is very serious, leading to the lack of financial resources in rural areas.To ease the contradiction between supply and demand of rural finance and strengthen rural financial services for rural financial development, on December 20th,2006, China Banking Regulatory Commission released the " opinions of adjusting to relax the banking financial institutions in rural areas and better accessing policy to support social neo-rural construction", hereinafter referred to as" opinions", with the features of low threshold and strict supervision, for the purpose of opening up the rural financial markets. The new "rural banks", "loan companies" and "rural financial credit unions" have right to be founded. As a new form of rural financial institutions, rural banks open China's rural market, which can be described as a bold attempt, but because rural bank is a new thing, how to survive and sustained develop for rural banks is a very key issue.This thesis starts from three aspects, the first is to ask questions—with the background of the establishment of rural banks and the current development situation, how to survive as a new thing; the second is to analyze questions—through the analysis of the advantages and disadvantages of rural banks, for example the deviation of market positioning is different,the management is backward, analyzes if the rural banks can really stay in the rural areas; the third is to solve problems—how the rural bank to resolve the problems through its own efforts. Finally the author gets the conclusion that although the rural bank is an emerging thing, but in rural areas, there is a great space for its development. With a growing number of financial institutions, the rural banks can make the rural financial market prosperity, with credit unions, postal savings and other financial institutions.