Research On The System Obstacles And Legal Consummation Of New-type Rural Financial Institutions

As a result of the dilemma that the existing rural financial institutions were unable to promote Chinese rural finance, the government wanted to explore a new development path by establishing new-type rural financial institutions. Compared with traditional ones,new-type rural financial institutions show something “new”, such as more focused on countryside, agriculture and farmers, open to private capital, lower shreshold of access, which make them of great significance in solving rural financial problems. However, as new-type rural financial institutions develop rapidly, related systems also show their shortcomings. In gerneral, the existing systms can not meet the requirements of new-type rural financial institutions on "profit-seeking", "rural-supporting" and "competitiveness", which makes it hard to realize sustainable development for these institutions. Under this background, this paper analyses the relevant legal systems of new-type rural financial institutions, and with the successful experience of foreign financial institutions, the paper also puts forward some suggestions to consummate them,hoping to promote the healthy sustainability of new-type rural financial institutions.Apart from the introduction, this paper contains five parts.The first part is maily about the background and significance of the establishment of new-type rural financial institutions. With the important role of finance in economic, underdevelopment of the rural financial market and long-term existence of the "systematic negative investment" phenomenon, new-type rural financial institutions were founded and rural financial services have been greatly improved.The second part mainly analyses the characteristics and development status of new-type rural financial institutions. Firstly, briefly introduce and compare village bank, rural fund cooperative, loan company, and small-sum loan company. Then point out the “new” features by comparing new-type rural financial institutions and traditional ones. Finally, according to current situation of the new-type rural financial institutions, designate the problems they are facing.The third part analyses the existing systems which are not suitable for new-type rural financial institutions. At first, point out the fact that relavant legal systems restrain the development of new-type rural financial institutions most. Then analyse three systematic demands of type rural financial institutions and point out that the current system supply don’t fit demands. Finally, make a concrete analysis of the problems of current system supply.The fourth part introduces the development patterns of typical foreign financial institutions. American Community Bank, Japan Agricultural Co-operatives, Grameen Bank in Bangladesh are introduced, and with analysis of their characteristics, some experience are concluded to promote Chinese new-type rural financial institutions.The fifth part puts forward suggestions to consummate the related legal systems of new-type rural financial institutions. Firstly, point out the general goals of system consummation. Then provide concrete measures, such as canceling the contraints on funds raising and operation; establishing an effective and incentive mechanism to encourage new-type rural financial institutions to serve countryside, agriculture and farmers; and improving rural credit guarantee system,agricultural insurance system and other systems to provide fair and competitive environment for new-type rural financial institutions and the traditional rural financial institutions.