Research On The Sustainable Development Of Village Banks In China

Village Banks are the outcome of China's rural financial system reform.Their mission is to mobilize more financial resources to support the priority development of “weak” customers,starting from the farmer's real demand and the internal structure of rural market.Since its launch in 2007,Village Banks have grown vigorously and become a new force providing more accurate services to rural "weak" customers.To a certain extent,they have effectively activated the vitality of rural financial market.However,Under the New Normal Background,Village Banks are faced with many practical difficulties,which hinder their steady,effective and sustainable development.Therefore,from the perspective of sustainability,it is of certain theoretical and practical significance to explore the development path of Village Banks in serving “weak” customers.Based on collating and reviewing relevant literature at home and abroad,this paper has sorted out the market positioning of “weak” customers in rural banking services and analyzed the connotation and realistic dilemma of sustainable development.Finding that the imbalance in the overall development of China's Village Banks has always been outstanding,some of them have a good momentum of development,but more rural banks have grown slowly due to problems such as the deviation from positioning,the difficulty in storage and profit,and the scarcity of talents.Taking S Village Bank as the object of research,this paper has formed two conclusions by analyzing its developing stage and the financial innovations such as microdeposits and micro-loans: First,the only way for the sustainable development of rural banks is to give full play to the advantages of “grassroots” banks and community banks,only in the process of precise service of “weak” customers,rural banks can establish their brand advantages;Second,implementing the localization of advanced micro-loan technology is a strong support for the sustainable development of rural banks.Not only can the small-sum short-term credit loans operated on the principle of commercialization meet the “weak” customers' needs,but they can cover the high capital cost of Village Banks and build a platform for high-quality credit teams.After summarizing the development experiences of the Grameen Bank,the BRI-UD and the Umpqua bank,this paper aims to point out that Village Banks should take the initiative to return to its source and cultivate the rural community market intensively.Besides,strengthening the localization of advanced loan technology,attaching importance to sustainable talent training mechanisms and developing financial technology according to local conditions are also the measures China's Village Banks should pay attention to.