The Research Of Risk Supervision Of Village Bank Of China Finance

The establishment of village bank in large part by making a sound rural financial system, rural financial services, "blank" has been filled. However, due to the establishments of regional village banks are mainly in rural areas, services objects are mainly farmers and small enterprises, in addition to the trait of small scale, which determine the greater potential risks in the development of rural banks.To prevent and defuse the risks of village banks, the top priority is to strengthen the supervision of rural banks, establish risk regulatory philosophy, and complete the risk regulation of rural bank. Only in this way can we promote healthy and rapid development of rural banks and let rural banks play a useful role in the building of new socialist countryside.This article is divided into six parts. The first part is introduction, which introduces the research background of bank risk supervision in our country, and also makes a simple literature review, indicating the significance of the research, method and content.Part II first describes the current development of village banks, and come up with the conclusion that although rural banks have gained fast development with large quantities, it's far less than the number of China Banking Regulatory Commission requirements; and then define the characteristic of rural banks which indicate rural banks are included in the range of rural communities commercial banks.The third part make a concrete analysis of the risk faced by village banks on the basis of the description of the concept of risk, which lead to the cognition that the main risk village banks face are credit risk, liquidity risk, operational risk and special risks village banks face including industry risk, policy risk and credit concentration risk.The fourth part analyzes the necessity of bank supervision from the initial point of introducing the emergence and development of banks, then draw a conclusion that it's the banks' operation with high debt resulted in the high risk of banking industry, which makes bank supervision to be necessary. Then emphasizes on introducing the evolution of the concept of bank supervision, and form an opinion that the concept has gone through three stages of evolution, the "regulatory compliance (to the 20th century, the Great Depression 80 years ago) - Capital Regulation (80 to 20 of the 20th century, mid-90s) - risk control (20 since the mid-90s) ";Part V analyzes the general problems exist in the process of rural bank supervision from six perspectives: the lag in construction of laws and regulations of supervision, the problem in off-site supervision, the problem in continuity and pertinence in on-site supervision, the blank in forming regulatory force, the disorder in monitoring role, and the problems in professional configuration and staff training, and points out that those problems are also the general problems exist in the regulatory process. Then raises three regulatory models in accordance with the main risks rural banks face, which are credit risk IRB, liquidity risk random model, operational risk internal measurement approach.Part VI, which is also the last part, proposes countermeasures and suggestions in the risk regulation of rural banks from several perspectives: further improvement on relevant legal system, completement in the mechanism of internal risk management, improvement on the credit investigation; establishment of credit rating system, more efforts on expanding fundraising channels; appropriate methods to deal with liquidity risk, more training on the "risk control" concept; more enrollment of high-quality talent, stronger publicity of credit policies which can raise the recognition, actively seek policy support from local government.