Legal Regulation Of Rural Banks In China Under The Background Of Inclusive Finance

Rural finance is the core of the modern rural economyand it is an important force to support the development of agriculture and rural economy. While because of the future of small demand, high frequency, high risk, high cost, large and medium-sized financial institutions can not make profits from its service in the rural areas. So the armers, rural areas and small and micro enterprises are generally been discriminated and be excluded from the formal financial services. The shortage of funds and financing constraints have become the development bottleneck for the farmers and small and micro enterprises. Therefore, we must accelerate the reform of rural finance, to increase the supply of rural finance and improve financial servicesaccording to the characteristics and changes of rural financial demand. One of the most important direction of rural financial reform is to accelerate the establishment of the inclusive rural financial system, so as to provide services to all sectors of society and groupseffectively, especially the social crowd that the current financial system does not cover. Service. The inclusive finance is written into the Party Constitution in the third Plenary Session of the 18 th Central Committee of the CPC, and the government work in 2015 reported that the inclusive finance should become the rain showers to the small erterprises, and then the NPC and CPPCC in 2016 proposed to develop inclusive finance vigorously, the inclusive finance has aroused widespread concern in societyand our country has been in efforts to promote the development of inclusive finance. As an important achievement of the development of financial reform, the rural village bank increase the supply of rural financial markets and ease the problem of the financing difficult in rural areas, promote the perfection of the system of inclusive financial. But we must pay attention tothe problems of China’s rural banks in the process of its development, the rural banking laws, regulations and supervision mechanism is not perfect and the operation mechanism is still not standardized, which leads to the significance of inclusive rural banks deviate from the target of supporting agriculture.This is very unfavorable to both thesustainable development of rural banksor to improve the financial services of farmers or small and micro enterprises.This paper analyzed the existing problems in legal regulationand how to improve the development of the rural banks mainly under the background of financial inclusion. The thesis consists of the introduction, main body and the end of language, and the body part contains the follows:The first part is the theory summary part. Firstly,it researchon the emergence and development process of the concept of Inclusive Finance, and defines the early form of it is microfinance(in a certain sense, the concept is a deepening and development of the microfinance concept, and rutal banks is a kind of financial practice activity under this concept), at the same time, I lead to the core of this paper, fully discusses the legal regulation of rural banks under the concept of Inclusive Finance. Secondly, on the basis of comprehensive analysis of the concept, characteristics and significance of rural banks, it is clear that it has a certain uniqueness, and then put forward the reason that its legal regulation is different from the traditional banks.In the second part, I especiallysummarize the key problems existed in the legal regulations of village bank in China,based on the current situation of the development of China’s Rural Bank and the status quo of the legal regulation.The problems contain low legal position, deviation of market position, the unreasonable sponsor system and ownership structure is, the unperfect risk prevention mechanism, and the regulatory mechanism is lack of pertinence.This is helpful to put forward suggestions to improve the legal regulation of rural banks.The third part summed up the successful experience of the legal regulation of rural banks in the international based on the analysis of the contents of legal regulation of foreign financial institutions.I main analysis two representative countries, namely the Grameen Bank in Bangladesh and community banks in the United States. I pointed out that implication of these international micro finance institutions of the relevant laws and regulations of our country, especially in accordance with the concept of Inclusive Financial. This is an important reference to the legal regulations of rutal banks in our country.The fourth part puts forward the countermeasures and suggestions to solve the problem based on the above questions. Firstly, put forward the value orientation and principle of the regulationon based on the concept of inclusive financial. Then put forward some specific suggestions.