Research On The Incentive Mechanism Of Private Capital To Build Rural Banks

The establishment of rural banks,as a typical practice of the incremental reform of China's rural financial system,have achieved remarkable results in “city leads village”,“rural credit”,“small business credit” and other aspects since 2007.The development of rural banks is of great significance to build a multi-level,wide coverage and sustainable rural inclusive financial system in China.The state has issued a series of normative documents to provide policy guidance for private capital participating in the construction of rural banks.Financial and tax incentives,as an important means of macroeconomic control,play an important role in encouraging private capital to participate in the construction of rural banks.In recent years,China has issued a series of normative documents to encourage private capital to participate in financial and taxincentives of rural banks,and through supporting financial and tax incentives of rural banks,these documents encourage private capital to participate in the construction of rural banks.Financial incentives are mainly embodied in three aspects: the subsidy system of prescribed fee,there ward system of agriculture-related loans increment and the regional financial incentive system.Among them,the subsidy system of prescribed fee has the most obvious effect,the amount of subsidies accounts for about 74% of all financial and tax funds.However,the short period,insufficient effort,lack of funds and a series of problems in the existing financial incentives has seriously restricted the sustainable development of rural banks.Tax incentives are mainly reflected infollowing five aspects: value-added tax and its additional tax,enterprise income tax,personal income tax,stamp duty and property tax.The series of normative documents of tax incentives have reduced the tax burden on rural banks and have made a certain effect on encouraging private capital to participate in the construction of rural banks.However,the defects in the design of existing tax incentives have restricted the private capital to participate in the construction of rural banks to a certain extent.This paperanalyzes the problems existing in private capital's participation in the construction of rural banks and the financial and tax incentives,and puts forward some concrete suggestions on perfectingthe financial and tax incentives that encourage private capital to participate in the construction of rural banks on the basis of the useful experience of foreign countries.In addition to the Introduction and Conclusion,this paper is divided into four parts:The first part is an overview offinancial and tax incentives of private capital's participation in the construction of rural banks.The part first analyzes the connotation of private capital's participation in the construction of rural banks.Then demonstrates the principle of economic law of financial and tax incentives of private capital's participation in the construction of rural banks.The second part is the operation mechanism of financial and tax incentives of private capital's participation in the construction of rural banks.This part first demonstrates the motivation of private capital's participation in the construction of rural banks.From the reason to encourage private capital to participate in the construction of bank banks,this part analyses that encourage private capital to participate in the construction of bank banks is the need to ease private capital investment,the need to promote the development of rural banks and the need to fill the gaps in rural financial services.Then demonstrates the operation mechanism of private capital's participation in the construction of rural banks with financial and tax incentives.Last analyzes the incentive tools and the mechanism of financial and tax incentives of private capital's participation in the construction of rural banks.The third part is the status quo and problems in financial and tax incentives of private capital's participation in the construction of rural banks in our country.This part sorts out the specific system of financial and tax incentives according to the specific content of financial and tax incentives of private capital's participation in the construction of rural banks in our country.With the application of the system,a profound analysis and summary of current financial and tax incentives of private capital's participation in the construction of rural banks has been made.The fourth part is the perfection of financial and tax incentives of private capital's participation in the construction of rural banks in our country.In this part,combining with the problem mentioned in the fourth part,the author puts forward some concrete suggestions on how to improve the financial and tax incentives of private capital's participation in the construction of rural banks in our country on the basis of useful experience of foreign countries.