Research On The System Of Market Access For Village Bank In China

Institutional innovation of rural financial system is an important arrangement of “The 13 th Five-Year Plan”. To further improve and utilize all kinds of new rural financial institutions to support the poor is an important research subject. Compared to other developed countries, China's rural financial market started late, the regulations are incomplete, and there are a lot of risks. The creation of village banks provides huge power for the prosperity of the rural financial market, truly serves the vast number of poor rural areas, stimulates the sluggish development of rural economy to some extent. The healthy and stable operation of village banks is highly subject to the complete regulations and supporting facilities. The most important aspect is the construction of t he market access system. Therefore, this essay will firstly analyze the background village banks are facing in China's rural financial markets and the relationship between the cost and benefit through the use of the transaction cost theory in the economic theory. Secondly, this essay will look for the weakness of China's village banks by comparing to related foreign banking system. Finally, this essay will propose the idea to improve our market access system of village banks on the basis of the pilot village banks operations, to make village banks become pacesetter to support the poor and construct new socialist countryside.This essay will elaborate the above problems in five parts:The first part is to introduce the basic theoretical background of village banks briefly. This essay will analyze the environment of village banks and rural financial markets, highlight the significant role of the village banks, then explain the market access system is the most important part, and analyze the meaning and value of the system itself.The second part is the theoretical analysis of legal regulations for the market access system for village bank. On t he one ha nd, the analysis of transact ion cost theory in the e conomic theory indicates that demand and supply are important factors restricting the development of village banks in rural financial markets, and the balance of cost and benefit can only be achieved by scientific and rational management of demand and supply. On t he other hand, analysis of the importance of im perfect competition and government failure through economic law gives ac cess to analyzing the dilemma faced by ope ration of market access system from the perspective of economic law.The third part is us ing the actual operation to analyze the current situation and main problems of market access system of China's village banks. This essay will analyze the current situations and risks from four as pects: the qualification system,registered capital system,practitioners access system,business access system.The fourth part is to analyze the foreign village banking system through comparative analysis. This analysis is mainly conducted by seeking relevant data and documents about foreign village banking system. The analysis of American community banks, Japanese rural cooperative financial institutions, Bengalese Grameen Bank provi des a strong basis for reference and transplantation of v illage bank market access system.The fifth part is to propose a conception to improve village market access system in China. On the basis of the third part and the fourth part, this essay will summarize a village market access system which is suitable for China's current situation to make qualification system, registered capital system,practitioners access system,business access system more suitable wi th the market, and provide institutional guarantee for the efficient, scientific, stable development of village banks in China.