Our Community Bank And Its Legal Regulation Conception

With the development of society and the integration of urban and rural areas,state-owned banks and state-controlled financial institutions has failed to meet the needs ofsome small and medium enterprises, private enterprises of all sizes, micro-enterprises orself-employed enterprises and farmers subject to a series of harsh constraints. Rural creditcooperatives that focus on the rural market only will gradually fade into history, which willgive community banks some room for survival and development. In view of this, We carriedout research on community banks and the related laws and regulations, found someproblems, and combined with foreign practices, make some suggestions accordingly.The article is divided into four parts. The first part makes a general introduction oncommunity banks, by conducting theocratic research mainly from perspectives of market andregulation, community development, financial development and coexistence systemdevelopment, meanwhile to understand the legal connotation of community bank fromperspective of the definition of community background and definition background. andanalyse the survival status and dilemma of community bank based on the development status.we found that the community banks accumulate enormous information on small and mediumsized enterprises and their owners, suppliers,clients and the communities the enterprises liveand have advantages of low information cost, short decision making procedures and highdecision making efficiency as a result of their long term and all level relationships withclientsThe second part of the article mainly analyze and discuss on the feasibility of thedevelopment of community banks in the country from the following perspectives: first, fromChina’s banking system and its monopoly status, for security and profit pursuit reason. It’sdifficult to satisfy all kinds of need; second, from the needs of china’ s financial market, whichhave all levels of needs, requiring diversification of financial institutions, one of which iscommunity banks. meanwhile there is financial vacancy in community where small and medium sized enterprises and its owner, suppliers and clients live, which also providesurvival room for community banks.The third part of the article is to research on law and regulations of foreign countriessuch as USA, Australia, Japan and Bangladesh.etc. considering the improving market statusand the characteristics of private owned, regional run, small sized, mainly serving communityresidents and SME, of China’ community banks,The fourth part of the article is mainly inadequate and related practices in Westerncountries exist for our community banking laws regulating aspects previously described, tomake specific idea of community banking laws and regulation: the need to improve theregulatory system of community banks, improve their market entry exit system, and build acommunity bank risk alert system, the risk assessment system, and community bankinginsurance system.In summary, after analysis and conclusion of the current status, disadvantages andcountermeasures of china’ s community banks, it’s theoretically necessary and practicallyneeded to research on community banks and its law and regulations.