The Study On The Village Bank’s Status And Development Strategies During Urbanization In Hebei Province

Urbanization is the process of economic development, population transfer, and the evolution of industrial structure, the great changes of people’s production and life. The process has generated a lot of demand on capital, technology and talent. And urbanization has occurred in the poor rural areas, so the help and support of modern finance is particularly necessary. But at the same time, the scale and business model of the large and medium-sized commercial banks which is the backbone of modern financial industry have determined that the operating cost of the large and medium-sized commercial banks is high in rural areas, so they haven’t comparative advantages. Therefore, the urbanization requires service and support of the new types of financial institutions which is suitable for rural areas. For this purpose, the Village Banks as a new type of institution in rural financial market of China came into being. The Village Banks who have been born and developing, will surely play a crucial role in urbanization. Hebei province located in the north China plain, has the large population and agricultural production. By the end of 2013,36 village Banks had been set up in hebei province. The Village Banks’ development strategies and the approach to play a positive role in urbanization of hebei province has become an important subject.Previous research according to the specific condition of hebei province were rare, although village Banks and similar financial institutions has been made plenty of research. Especially, the research on Village Banks in the background of urbanization in Hebei province has been still blank. This thesis has adopted the methods of normative analysis and empirical analysis to study, while referenced the successful experience of foreign countries. First this thesis has introduced the research background, significance and methods in the introduction part. Then the thesis also introduced the basic concept and theories of the urbanization and Village Banks, the relevant experience of foreign institutions which is similar with the Village Banks in China, and finished the literature review. The main part of the thesis analyzed and expounded the role of Village Banks in urbanization of Hebei province and analyzed the problems and reasons of village Banks’ development in hebei province, from the external management environment and its own construction, etc..On the basis of in-depth analysis and research, the thesis put forward development direction and optional modes of the village Banks in Hebei province with urbanization. Meanwhile,the thesis offered some proposal which had been used to strengthen Village Banks own construction and improve rural Banks external management environment by government departments, from the micro and macro level.At the last, the conclusion of this thesis is summarized.