China Village Bank Development Research

Nowadays,the insufficiency of rural financial service in the countryside of our country is becoming the bottleneck which prevents the development of agriculture,countryside and farmers.This seriously holds back the growth of famers'income,argriculture development and village economy.At the end of the year 2006,China starts to set new rural financial institutions to solve the problems lies in rural areas such as low-coverage network for the existing rural banking financial institutions,inadequacy for financial sevice supply and competition.The village bank is the most popular ones among the new rural financial institutions and there have been about 349 village banks established in China until the end of 2010.The establishment of village banks has two aspects benefits.For one thing, it can promote the competition of the rural financial system, improve the service level and efficiency of the whole rural financial system and eventually come out the"soup effect".For another thing,it can increase the supply institutions of rural finance,diverse the rural financial institutions,solve the difficult credit questions that farmers and small and medium factories have met before and it plays an important part in the construction of new socialist village and the harmony of the rural economy and society.We should also realize that village bank is a new kind of rural financial institution that still has a lot of problems which need us to face ,solve and perfect.Only in this way the village banks can develop healthy.This paper consists of five chapters.The first chapter is introduction which introduces the studying background and meaning of this paper,the research idea and method of this paper,the innovative points of this paper and literature review for domestic and foreign academic works.The second chapter starts from the establish background of village banks,and defines the conception and basic features of village banks.The third chapter introduces the status of our village banks and analysis the developing problems that the existing village banks have met,such as low social awareness,high operating costs,insufficiency of business innovation ability and rural credit guarantee system,etc.The fourth chapter introduces some successful foreign experiences of developing village bank.The last chapter gives some practical suggestions and measures to keep and promote the healthy development of village bank.