A Study On Legal Problems With Rural Commercial Banks

The construction of new rural financial institutions should bear multi-developmental concept of these three:financial equity,financial security and financial efficiency.Rural commercial banks are the products of rural financial reform at the beginning of this century.With the deepening of reform in the past more than 10 years,they play a more and more important role in supporting agriculture,supporting micro businesses and so on.A sound internal governance system of rural commercial banks can reflect financial efficiency.A perfect external supervision system can embody financial safety,while the legal guarantee for serving the three rural issues can reflect financial fairness.In practice,the effects reached by the rural commercial banks in these three aspects are poor.First of all,the internal governance system still exists the problem of irrational ownership structure and the deficiency of the board of supervisors.Second,there are still some problems in the external supervision system and mechanism,such as:imperfect government supervision,defects in the Provincial Federation system and the failure of the self regulatory organizations to play their due role.Third,the legal protection of three rural issues is not enough.There are three problems:lack of clear market positioning,imperfect laws and regulations related to agricultural loans,lack of special supervision and management departments.At this time,only a sound legal system can save the critical situation,and run rural commercial banks back on track.To solve the above three problems,one is to enhance rural commercial banks internal governance system in legal system,which means improving the system of equity protection from the legislative level,to ensure that all people really enjoy the corporate governance rights and power,plus,improving the board of supervisors of the optimization effectiveness;two is to reconstruct the external supervision system and mechanism,which means adjusting the Provincial Association of Management,improving the government supervision system,and enhancing the self-discipline management effectiveness;three is to strengthen the legal protection for the three rural service,which means enacting legislation to clear its market positioning,refining the laws and regulations of the agricultural-relevant loans,joint agency internal supervision and Management Committee of three rural issues.