Research On The Development Of Village Banks In China

The country and every social community pay more and more attention to the three-dimensional rural issues and from2004to2013the central document No.1continues to regard this problem as the top priority. The rural financial institution system is the key to supporting the development of rural economy; whether the structural institutional reform and Innovation and development of it are successful or not has fundamental significance to dealing with the three-dimensional rural issues. Research on related problems of rural finance has become the focus of attention and research. The establishment of village banks is an innovation of rural financial institutions reform, and to some extent, it can not only improve financial services in rural areas including lack of business outlets, the problems of rural service coverage, and the shortage of funds for agriculture, but also it can increase the selectivity of the rural financial service customer, enrich the multi-level rural financial services and contribute to improving the overall level of financial services in rural areas. In2007, China’s first village bank Sichuan Yilong Huimin village bank was set up formally. Subsequently, village banks sprang up like bamboo shoots after a spring rain, and the number of village banking institutions is on the increase. Meanwhile, the village banks within Shandong province also obtain the fast development.Banking institutions are in fierce competition in the rural financial market. Being the small town bank and there being so many competitors, it has much pressure in survival and development. At the same time, while developing village banks are faced with multiple problems such as Limited sources of funding, bad deposit stability, small businesses, lack of innovation, weak risk control ability, improving staff capacity and so on. This paper focuses on the development of village banks in China, based on the current situation of rural finance and close to the economic development and financial reform direction, and it makes full use of the village banks’ business data and the corresponding survey data for a period of time; it concludes and analyses the status of development and operational efficiency evaluation, discussing all kinds of problems affecting the development of village banks; what’s more, it makes reference to small banks development pattern and the successful experience; in the end, it puts forward corresponding countermeasures to promote the development of China’s village banks.