Study On Sustainable Development Of Rural Banks

At present,the establishment of village and town banks is a great innovation of rural finance.The village bank has rooted in villages and towns,it has been mainly providing investing and financing services for supporting the development of the rural economy.The village bank is beneficial for famers' income,the economic development in township regions.The village bank is convenient for the regional investment and financing,it can provide new vitality for the rural economy and can vigorously promote the construction of new rural areas.The prosperity of village banks makes the new rural financial service system and service model become a reality.The pattern of taking the agricultural bank,the rural credit association and the post saving bank as the three main banks all the time,has limited the diversified development of the rural finance,has caused the difficulty of rural economic financing channels and the lack of investment opportunities to a certain extent.In villages and towns,especially in rural areas,opportunities for illegal financing and other phenomena has been increased significantly.The establishment of village banks can make full use of the objective condition of rural markets comparing to the not fully competitive financial market,under the large financial trend of the marketization of the interest rate,it can effectively absorb the large number of rural idle funds,make reasonable prices and dig deep into the market.The establishment of village banks can increase the supply of rural funds well,can fully improve the utilization efficiency of funds,can improve the turnover rate of funds.What's more,the financing demand of diversification of rural economic growth also can get the supply as much as possible,the demand for investing and financing of multiple levels of rural economy can be further satisfied.The establishment of village banks is not only good for their rapid development,but also can effectively promote the economic development of rural areas.In the process of village banks rooting in villages and towns,the rural financial system is the weakest link of the financial system.Financial services in rural areas arenot in place,financial markets lack effective supply,the problems of the market failure and the moral risk and others have emerged.These are caused by the objective fact of the low coverage of rural financial institutions,not sufficient market competition and the lower per capita income of farmers.At the same time,comparing to large state-owned banks,village banks is relatively inadequate on aspects of the capital foundation,the personnel quality,the enterprise culture system,the prevention ability and controlling ability of risks.,etc.Therefore,in order to achieve the goal of sustainable development,this paper puts forward the corresponding countermeasures and suggestions,by taking the Nanyang village bank as an example,by studying form aspects of the establishing background,the organizational structure,the operating mode,the operating results and others,by considering from internal and external aspects,by combining with characteristics of their own factors.