Research On Supervision System Of Rural Bank

As a new rural financial institution and special commercial bank in Chinese rural areas,from its inception, village bank is endowed with the profit and agriculture function. However,due to its characteristics and defects of regulatory system, it is often deviate from theagricultural direction. The practice has taught us it is not realistic to rely on its self-correcting,because capital always pursuit for profit. We must improve the supervision system. First, byanalysis of the characteristics and legal nature of the rural bank, The paper explain whyrural bank has the profit and agriculture functions, and why it is likely to deviate from theagriculture function.Then, from the perspective of the purpose and the theoretical basis of thesupervision system, The paper analyze the flaws of the supervision system. Finally, to perfectthe supervision system, the paper put forward some suggestions to coordinate the profit andthe agriculture function of village banks.The thesis includes five sections. The introduction introduces the history and currentstatus of the village banks, and points out some problems in the development process of ruralbanks. The first part establishes the special legal nature of the rural banks. From theperspective of village bank’s characteristics, it puts forward that the rural bank is differentfrom the traditional commercial bank, for its agriculture function. Then it infers the purposeand theoretical basis of the supervision system. In order to improve the supervision system, inthe second part, it analyzes the development status of the rural bank and points out theproblems of existing regulatory system. The third part introduces the supervision system offoreign village banks and explains their successful experience. The fourth part comes up withsome suggestions to improve the regulatory legal system of rural banks, such as thesupervision principle, the regulatory body, the regulatory elements, and so on.The core concept of the article is to perfect supervision system to coordinate the profitand agriculture function of the village banks, and to achieve the sustainable development ofrural banks. At last, it is to solve the problem of insufficient financial supply of Chinese ruralareas.