Research On Legal Regulation Of Foreign Village Bank Risk

Foreign village banks as the effective strength of the supply of rural financialmarket in recent years has been made to the vigorous development, it has greatly easedthe constraints of Chinese rural economic development "bottleneck" that is, farmers,rural SME loans. China’s accession to the WTO has passed ten years, during which, theChinese Banking conscientiously fulfill obligations of the opening, the abolition offoreign banks operating region, the customer object and other non-prudentialrestrictions on foreign banks in the implementation of WTO commitments on the basisof national treatment. Foreign village bank is certainly no exception enjoying thepreferential policies.As the curtain is pulled back in China’s new rural construction, the funding needsof rural areas will also be greatly increased. However, Chinese rural financialenvironment has a higher demand on the financial institutions established in rural areas.Foreign village banks in the management of business subject to its own constraints, andother large state-owned commercial banks, rural credit cooperatives compared to facinggreater risks and challenges, risk control problem can not be overlooked. Legalregulation produced the most effective way to one of risk control is of great significancefor the foreign village banks. This paper hopes to analyze research by problems fromthe risk of legal regulation path and the main content of foreign-funded village bank, therisk of legal regulation, and then put forward a set of suggestions strengthening the legalregulation of foreign village bank in Chinese risk.The entire article is divided into four parts, the first part of the article describes thelegislative implications of the foreign-funded village bank, summed up the legal natureand main characteristics of the foreign village banks by comparison with other financialinstitutions. The second part of the article into the topic to reveal the theoretical basis ofthe risk of foreign-funded village bank and its legal regulation. Firstly analysisforeign-funded village bank risk type, identify the types of risks faced by foreignvillage banks, and then talk about the necessity of legal regulation in the regulation, thebasic objective of the path selection and the main content. The third section summarizesthe main problems in the foreign village bank risk legal regulation, followed by Part IVof the problems pointed out for the above proposed a strengthening of therecommendations of the risk of legal regulation of foreign village bank in China. The healthy sustainable development of foreign village banks not only related toforeign financial institutions in their own interests, but also have a significant impact onChinese rural financial stability. The Legal Regulation of production for risk control isthe most solid of a line of defense, seems to improve and perfect is essential, the weakrequirements of the legal construction of Chinese government departments to increasethe construction of rural finance legislation, to create a favorable legal environment,such as foreign village banks, foreign financial institutions in Chinese rural financialmarket to play a more long-term positive effect.