Research On The Problems And Countermeasures In The Development Of Rural Banks In China

In recent years, China’s sustained and rapid economic development, economic output already ranks second in the world. But the accompanying issue of the urban-rural dual structure, further constraining economic and social development. Development in the vast rural areas are falling behind, especially in the financial system is far from being mature, it is difficult to provide financial support for rural sustainable development. In view of the above issues more prominent, China Banking Regulatory Commission on adjusting was enacted in2006relaxed admission policy of banking institutions in rural areas to better support some views on the construction of a new Socialist countryside in order to promote rural financial institutions established, good service in rural economic development. Following year, opening of first village Bank in Nanchong, Sichuan, which indicates that China has entered a new stage of development of the rural finance. Subsequently, the village Bank, entered the stage of rapid development, rapid growth in the number. As of December31,2013, the village banks in China is already hitting1071,covering all provinces in mainland China.Village Bank system are important for China’s rural market, for establishing and perfecting rural finance system will play an important role. While village banks in China has made a lot of achievements, but at the same time it should be noted that there is a defect.Scarce such as inadequate supervision measures, highly qualified people, risk management needs to be improved, and so on, these issues restrict the further development of China’s rural Bank. Based on this, the village Bank, this paper as a research object, through theoretical research, analysis and trend forecasting, explore the village Bank development prospect in China. First, this paper reviewed the background and development of village Bank history, village banks set out definitions and related concepts. Secondly, this paper briefly reviews the theoretical literature on the village banks at home and abroad, in an attempt to have a better grasp on current research situation. Then, this article explores the current situation of development of China’s rural banks, using the latest data released by the China Banking Regulatory Commission, a detailed analysis of the distribution, type of organization, sponsor of China’s rural Bank and capital scale and other aspects of the case. Subsequently, this paper focuses on the problems of China’s rural Bank in the current stage of development, and consists mainly of sponsor system is not perfect, deviation of market positioning, business management, risk management and control systems and policy support, and so on. At last, on promoting the development of China’s rural Bank has relevant policy recommendations, mainly consists of a sound market entry and exit, ready to set the market positioning, strengthening and improving management, risk management and control systems, as well as efforts to increase policy support and so on.