Research About Sponsors Of Village Bank

After so many years reform and opening up,it has remarkable achievements in aspects of financial reform, but the construction of the rural financial system is relatively insufficient. Rural areas in China still has a variety of conflicts, such as the overall income of the farmers is low, the supply shortage of financial services, they can be seen everywhere. To speed up rural development, ease contradictions, the Government from December 20,2006 began publishing a series of banking policies and regulations about the development of rural. Village banks in rural financial institutions is a form of new one, the rural financial reform is a touchstone.It will encounter many problems, a very key question is how to ensure their sustainable Development.Village Bank is a banking financial institutions approved by China Banking Regulatory Commission according to relevant laws and regulations, funded by domestic and foreign financial institutions, domestic non-financial institutions, corporate enterprises, domestic natural person, setting up in rural areas provided financial services mainly for local farmers, agriculture and rural economy development.The same as general banking financial institutions, the establishment of village banks needs to comply with the statute law which is necessary for business operation management and working staff, to establish a complete organizational structure and management systems, to meet the safety specifications of the business Venues and facilities and to meet other necessary requirements. In addition, regulators consider the problem of risk control, making a special provision during the establishment of village banks sponsors, that there must be more than one banking financial institution as its sponsor Moreover financial institutions of a single domestic bank Industry shouldn't be less than 20% rate. A single natural person, other single legal entity non-bank companies and their affiliates shall not exceed the total rate of 10%. This is a key problem of sponsor in actual operating system meeting many problems in the process, many cities are not able to build village banks because of lacking sponsorsThe first part is the full text of the article, introducing the research background, purpose, and research methods and research ideas. In the economy structure of urban-rural dual economic, the rural financial system development behind the urban one. There are many gaps and absence phenomenon in rural financial services,, regulators proposed the construction of services in rural financial institutions, so the research on the village bank is significant. By regulating quantative analysis and qualitative analysis, system analysis, a large number of comparative analysis, the author makes a profound study about issues related to the sponsors of village banks.The second part is a briefly comb on basic theory.This paper defines the concept of village banks, the structure of property rights, governance structure and other aspects of the business objectives of the characteristics of village banks. From the perspective of registered capital scale, market position and service target, this paper makes a distinction between different commercial banks. It also makes a simple comparison among rural banks and rural credit cooperatives and other traditional financial institutions in rural areas. Finally, it introduces development of three basic theories of the village banks, namely financial deepening theory, endogenous growth theory, and finance development of economic theory. They are guiding construction theories of our development of village banks.As the beginning of this paper has pointed out, although village banks have achieved some initial achievements, but many problems are still existing. The third chapter analyzes the general problems of the current rural banks, deviations from the expected market position, limitation of funding sources constrainting the bank's development. At the same time, product innovation is not enough, the settlement system is not perfect, risk control weaknesses, lack of human resources, etc. These issues are affecting to the sustainable development of village banks on different degrees.The fourth chapter studies the problem of the sponsors system in rural banking. Our rural banks want to arrive expected network coverage of regulators. If it can't break provisions initiated by the banking institutions, it is difficult to be done. From example of building village banks in Minqin village, there are many obstacles to the sponsors system.To break the barriers of such a system, in terms of permitting and risk control within a stable basis, to undermine the status of the majority shareholder of banking financial institutions. The introduction of natural and non-banking institutions within the territory to play as the main sponsor, because they are in some cases have the advantage of soft information. Meanwhile, the release of the sponsor system of rules, the introduction of foreign investors as the main sponsor is a good choice. Although there are some economic security risk, they bring advanced business and management concepts, with a strong willingness to invest. These can help development of our towns and village Banks and rural financial.Chapter five presents from the perspective of the sponsors of external supervision of village banks. Bank is a high risk industry, in order to control risks, maintain financial stability and ensure economic security, supervising its governance structure and capital operation is necessary. The regulatory authorities, supervising the bank that established by general sponsor, form four aspects, including market entry and market exit mechanism, on-site inspection and off-site supervision. For bank established by natural or non-banking institutions, on-site inspection should be highly relied on, on the three stages of points before, points during, and points after. To give full play to the supervision of external auditors, bank management should be their mutual coordination. Initiated by foreign investors, the village bank regulatory issues, in addition to supervising the general regulatory aspects, but also from the national level to monitor and improve its market exiting mechanism just for the economic security considerations.The sixth chapter as the conclusion, the author makes a study summary of the village bank sponsor, summarizes the innovations and shortcomings of this paper.