A Study On Sustainable Development Of Village Banks In China

Village bank’s establishment and sustainable development is an important part of the incremental reform of China’s rural finance, it’s also the important difficulties of building a new socialist countryside and a harmonious socialist society. Village banks want to last to play the role of activity and filling the seats in the rural finance market, to improve the supply of rural finance system and to lift rural financial services, the basic premise of which is to achieve sustainable development. Therefore, to study the impact factors of the impact of China’s rural banks in the road to sustainable development deeply, systematically and comprehensively and then to offer the appropriate strategies have considerable theoretical and practical significance.This paper firstly defines the meaning of sustainable development of village bank, which base on the development of economic theory, financial deepening theory of finance, endogenous financial theory, the financial sustainability theory. The author uses the scientific method of analysis to define the nature of the village banks, institutional arrangements and analysis of the current rural financial system inadequate supply and demand contradiction and development status. Besides, the author bases on the five perspective of sustainable development to examine the problems and learns from the experience of Grameen Bank and the United States community bank, combining with China’s basic national conditions. Then, this paper offers sustainable and healthy development of rural banks strategy:to strength own management, to innovative financial products and services, to improve the ecological environment and infrastructure and to improve financial sector supervision.This paper is divided into six parts:Part Ⅰ is the introduction and general introduction to the full text which interpreters the background, purpose, significance, research status at home and abroad, the text content and method in this article; The second part is the meaning of sustainable development and overview of the theory of the village banks; the third part is the system of rural banks in China, the background and development status; the fourth part is the difficulties on the road of sustainable development of village bank consisting of their own management, financial products and services, financial environment, financial infrastructure, financial regulations; the fifth section describes the experience of foreign countries (regions) small banks and makes a revelation to the experience of China’s rural banks; part Ⅵ is the sustainable development strategies of village banks,which bases on the emerging issues and relevant experience.