The Development Experience Of American Community Banks And Its Enlightenment To China

In recent years, the rapid development of micro, small and medium enterprises in China made a great contribution to our country’s economic growth. And their role and status in the national economy is growing. But at present there is one problem of difficulty in financing restricting these enterprises’ development. Besides, the supply and demand of financial services is serious imbalance in our country, which especially stand out between city and town. Resident only can get lack of financial service from normal channels, which will also increase the possibility of financial crimes. It bound to cause great harm for regional economy, even for the stability of whole society. Therefore, in terms of the status quo of our country, these problems need to be targeted to be solved for micro, small and medium enterprises and the region which lack of financial service.From the perspective of bank, the market positioning of a majority of small commercial banks tend to be the same with big banks’ in our country. As interest rates up, competition between banks is increasing fierce. If small commercial banks still could not find out their advantage to compete with big banks, they will be gradually packed into the increasingly narrow alley. All sizes of economics entities should get the service from their corresponding size of financial institutions. Therefore, bank institutions also need to positively explore their suitable development path to face increasing competitive market.Originating from United States, community banks account for 90% of the whole industry in U.S. After experiencing the mortgage crisis and merger of the banking industry, community banks still own thriving vitality and grow increasingly. They are the very important part in the America banking system. Therefore, it’s necessary to specifically study the development experience, and summarize their management advantages and development rules of community banks to make a model for the development of community banks in China.Health and perfect financial system should include large commercial Banks and many different characteristics of small and medium-sized Banks at the same time. The establishment and development of community bank can not only promote the development of domestic micro, small and medium enterprises, solve rural grassroots financial problem, but also benefit to enrich financial system and level and deeply reduce the risk of financial system. Through in-depth study of American community Banks, combining with the current situation of the banking system, this paper has certain theoretical and practical significance for putting forward the development path and suggestions of community banks in China.Starting from the research background and significance of the paper, after doing the related definition of America community banks and stating the related theoretical knowledge, this paper proceeds a specific and detailed study and analysis for the development status quo, characteristics and operating advantage of U.S. Community banks. On the basis of study of America community bank development experience, from so many angles of micro, small and medium enterprises, community resident, and the entire banking system, this paper demonstrates the necessity and feasibility of establishing community banks in China. Finally, one the basis of necessity of establishing community banks in China, this paper puts forwards the selectable construction way and related policy recommendation for community banks of our country. And from individual perspective, it puts forwards several suggestions relevant to business development of community banks for reference.The development degree of the American community bank has been quite mature. Through study their development experience and tendency, it have certain realistic directive significance for establishing and developing our community banks. On the basis of summarizing the existing academic research about community banks, combing current economy status and development tendency, stating form the questions facing now, this paper creatively discussed the community banks development tendency in China according to the competition advantage in the development of community banks.The establishment of community Banks in China mainly include transforming existing banking institutions and importing capital for new construction two ways. No matter from market positioning, scale and structure and accumulated experience and other aspects, the existing bank institutions of rural credit cooperatives and city commercial Banks have the significant similarity with community banks. Therefore, it can prioritize reforming the existing rural credit cooperatives and city commercial bank to establish community banks. From the analysis results, reforming current small bank institutions is the most cost-efficient construction way. But each way also has its own problems and advantages. In addition, the construction of community banks also need state policy support, such as strengthening policy support, setting up effective regulatory system, perfecting entry and exist system of community Banks in our country, etc.