Community Bank Development Research

Year 2006 is considered as the first year of development of community bank in China, after that, community bank ascends to become an integral part of the banking system as the fifth kind of bank besides the policy bank, the state-owned commercial bank, the joint stock system commercial bank, the foreign bank.Nowadays, the competition of our banking industry is inadequate. Under the situation of comprehensive opening in our financial industry after December 1st, 2006, the competition of Chinese banking system will become more intense than before. How to shorten the difference between inside and abroad quickly and increase competence become a common focus in theory circles and banking circles. From SMEs perspective, the financing bottleneck is still serious in development process. Furthermore, with the vigorous emergence of community economy, the amount of demand in community finance increases greatly which needing some relevant financial institutions to offer services. Under such background, supports for developing community bank raise. In this paper, there are some researches referring to several issues of developing community bank in China.Community banks have good flexibility in business mechanism, so they play an important role in alleviating financing constraints of SMEs, improving hardness of rural finance, optimizing structure of finance system and alleviating non-equilibrium distribution of regional economy, etc. Developing community bank will promote economic growth greatly. This passage first makes retrospect on some researcher's fruits and directions at home and abroad, defines the culture and characteristic of community bank on the basis of elaborating fundamental theory, analyze practical significance of developing community bank linking with realities in China. Secondly, introduce some internal practices opened and achievements gained, use analytical method—swot to research competence of developing community bank in China. Finally, take the USA and Austria development in experiences as reference to make some thoughts suitable for China, put forward several suggestions on establish mode, corporate governance structure,etc.