Research On The Supervision System Of Village Bank

As the main form of rural financial institutions of incremental reform, Village bankhas been of great attention from the beginning in academia and industry. Accompany thenumber of rural bank organization begin to take shape, The sustainable development hasincreasingly become the focus, challenges the design and regulatory supervisioncapacity. In view of this, this article discusses the theme from legal angle.Based on consulting a large number of literature and interview practice community,using the historical analysis, comparative analysis and other methods, this articlereviews, summarizes and analyzes the following content: the legal nature of villagebanks、current regulations、regulation effect; cause analysis、suggestion of village banksupervision system.About the legal nature of village banks, based on the legislative intent ofconsideration and analysis of related articles, this article considers village bank iscommunity commercial banks to provide financial services for the ’three rural’ in ruralareas.This article cardings and sums up supervisory laws and regulations, departmentalrules and normative documents for the village bank supervision. After description thecurrent system framework for the regulation of the rural banks, research regulatoryeffect and the existing problem. This article consider the main reason leading to thecurrent situation is the conflict between village bank support agriculture and its ownbusiness sustainability and the value conflict between financial innovation and financialsupervision.Face the problem, this article believes as long as the appropriate mechanism therural finance can be commercialization and large-scale development through theprofitability analysis of Chinese rural financial market and referring to experiences fromGrameen Bank, so it is entirely reasonable and feasible to make the "three rural"financial services and guide the village banks sustainable development at the same timeas the ultimate goal of regulation of rural banks in China. To achieve this goal, theregulatory authorities should provide a relaxed regulatory environment for its earlydevelopment of village banks, allows constantly innovate base on deepen rural financialmarket, eventually find the best mode in a local village banks.