The Research On Rural Bank In Hunan Province

Before2006, the Chinese government conducted a series of attempts in order to solvethe problems of the rural financial supply tension. Though the original intention ofgovernment is good, to some extent, siphon phenomenon increased the cash-strappedsituation in rural areas. Yunus, who is the founder of Grameen Bank, won the Nobel PeacePrize. The study springs up, which is about to the feasibility that the operation mode ofGrameen Bank is used in our country. Then the supervision department relaxed money intorural areas. As a new financial institution, the rural bank got a fast development. HunanProvince is a district where fish and rice are abundant. However, the agriculture, rural areasand farmers, the demand for money is great, providing market basis to the development of thenew rural banks in Hunan Province. But the development of market and capacity ofutilization is the key to the development of rural banks in Hunan Province.Then, the paper introduces the development situation of rural banks in Hunan Province.The size and structure of the rural banks in Hunan Province were introduced, and theoperation of rural banks in Hunan Province on agriculture, farmer and rural area of HunanProvince were analyzed. The following aspects of the problem exist in the rural banks ofHunan Province--positioning deviation from policy, unreasonable structure of shares, noindependent oversight, controlling risk and marketing deposits.Then, on the basis of practicalexperience of rural financial operation in Bangladesh, Japan and the United States, this articleput forward the following suggestions on the development of rural banks in Hunan Province:to carry on the reasonable market positioning, to implement supporting policies, to buildingthe construction of legislative system, to optimize the equity structure, to improve the internaland external governance mechanism, to reduce microfinance risk with soft information, toaccelerate the establishment of a deposit insurance system, to enhance the construction ofenterprise culture, and to improve the mechanism of staff appraisal on deposit. The presentsituation, problems and countermeasures in the paper has a certain meaning construction topromote the development of rural banks in Hunan Province.