Research On The Innovation Of The Village Banks System

Village banks, as a new type of rural financial institutions to provide financial services for the rural population, Its establishment and development is a useful attempt of the Chinese rural financial market liberalization and innovation. Innovations as the deepening of rural financial reform, village banks, injected "fresh blood" to the current development of rural financial, Conducive to building a competitive rural financial market, to some extent, ease the contradiction between supply and demand of the rural finance, but also for private capital to provide a healthy path of development. It has a positive meaning to the development of rural finance. However, from the village banks in2007started a pilot, but also exposed the many problems. this article analyzed the problem from the perspective of institutional.Through the analysis of the current rural financial market system of supply and demand to find the problems in the system running in the current village banks. First start from the demand side of rural financial markets, focusing on these two types of farmers and rural SME market players, these two types of main demand in the financial markets and the form of a questionnaire on the current farmers’ demand the characteristics of the empirical analysis. In System supply side, rural banks for the supply main, the analysis of institutional arrangements and development status of the current village banks. Comparative analysis of the system of supply and demand, the author summarizes some of the dislocation in the development of village banks, mainly the absence of the development goals of rural banks, the establishment of a limited way and the direction of development dislocation three aspects. From the demand side, the supply side and the Government to analyze the causes for dislocation of supply and demand of the village bank system. From the demand side, farmers and rural development of SME shave a lack of innate inferiority, and underdevelopment acquired, its own survival and development is faced with many difficulties; from the supply side, the village bank commercial banks, business development must take into account the maximization of the interests of the company, while reducing the risk exposure of banks; and lack of market regulation and guidance, supporting system is not perfect as a market manager. It can be said that the current problems faced by rural banks caused by the joint effort of many factors.System innovation as a core focus, normative analysising rural banks since the development of institutional innovation. Through institutional innovation since collate the development of rural banks, from the level of institutional structure and institutional arrangements analysis summary of the village bank system innovation is the system of government-led institutional innovation development mode. Faced with of the village banking system innovation principal shortage problem, the author proposes to expand the space of innovation subject innovation and strengthen the training of new farmers to encourage and nurture the rural banks to become innovations.The same time, the path of the institutional innovation of rural banks to conduct some research, village banks by strengthening its own building, to absorb more capital, improve the supporting systems to achieve a healthy and orderly development. Finally, this paper summarizes the village banking system in China Innovation is rooted in the institutional innovation of "path dependence" and the innovative power of the rural banks.