The Study Of Rural Bank Operation Mechanism

Issues about agriculture, rural areas and peasantry are the most important issues of the socialist modernization. With the development of the rural economy, the single lag of financial supply model is increasingly difficult to meet farmers’ demand for financial services, coupled with a lot of added money the new rural construction requires, bringing rural areas a huge capital supply gap. In order to solve the problems of the insufficient supply of rural finance and difficulties in obtaining loans about agriculture,rural areas and peasantry , the state proposed the establishment of new rural financial institution. In the five-year development process, rural bank drew the most national attention and growing fastest. However, a series of problems appear, such as financing difficulties, internal governance confusion, poor supervision, insufficient launched power. we argue that operating mechanism is not perfect were the most fundamental reason to the problems mentioned above, including the financing mechanism is not smooth ,imperfect governance mechanisms and so on.Under this background, based on in-depth studying about the development of rural financial theory, the course of rural bank development and the evolution of related policies, we applies the methods such as comparative analysis, system analysis and statistics analysis, learning from successful experience of foreign models and exploring the existing rural bank operating status, analyzing the problems and reasons which exist in rural bank operational mechanisms from the perspective of the theory and practice, getting the following conclusions: (1) The establishment of rural bank effectively eases the situation that insufficient loan supply and the absence of financial institutions of formal status in rural areas; (2) With the guide and encourage of national policy, the overall development situation of rural bank is good and multiple operation modes appear; (3) Since lacking of the legal system, lacking of development experience and self-organization structure is irrational, rural bank has many problems to solve immediately and financing dilemma is the most important factor restricting its development (4) It is essential to to improve laws and regulations about rural bank and increase government support for solving the problems in rural bank developement.This paper not only provides us with comprehensive detailed information about rural bank but also has great significance in policy: In order to achieve sustainable business development , it is necessary to increase financing channels, straighten out the financing mechanism; innovative ownership structure, improve the governance mechanism; strengthen financial regulation, improve the regulatory mechanism; intensify policy support, balance incentives. I hope this paper can provide some revelation to sustainable business development of rural bank.