The Research Of Legal System And Practice Of The Village Bank In China

Rural areas are the weak parts of economic development in China. With the gradually withdrawal of the large commercial banks and the inefficient financial institutions, its economic development was badly influenced in the region. In order to make up for the deficiency of the rural financial market, our country established village bank in 2006. To a certain extent, village bank improved economic situation of rural areas; meanwhile it also exposed the problems of insufficient funds,the weak of risk prevention as well as the imperfect supervision system etc. So the study of law system and practice of village bank in our country has great significance in achieving its sustainable development and improving the rural economy.First of all, this paper, started from the basic content of village bank, compared with other financial institutions, clarified its legal status in our country, exposed its current situation of legislation and development. Secondly, by analyzing the American community bank and the grameen bank, this paper found that their perfect management system, legal system and the unique way of supervision are worthy learned by our country. Thirdly, taking Y village bank for example, with the summary analysis of the whole village bank' status, we found a lot of problems, for example, the village bank are imperfect in legislation in our country and it is difficult to balance the interests among subjects. Meanwhile, they also have other problems, such as lack of risk prevention and control ability, legal supervision as well as advantage of the internet. Finally,with the problems of village bank,the article put forward a series of suggestions, for example, unified legislative principles, improved the system of market access, defined the village bank as community bank, established a predominantly rural credit system, improved the system of agricultural insurance and deposit insurance, built perfect legal supervision system, took moderate supervision to strengthen its internal control ability and so on. Meanwhile, this article also advocated the pattern of "Internet + Village Bank" to exert their own advantages, developed the internet financial, at last promoted rural economic development.