Research On Government Supervision And Administration Of Rural Small And Medium Commercial Banks In China

The 19th National Congress of the Communist Party of China requires prevention and control of major systemic risks.The rural small and medium commercial banking institutions in China accounts for about 50% of the total banking institutions,while serving more than 40% of the rural population in China.In recent years,the asset scale of rural small and medium commercial banks has developed rapidly,but at the same time,it’s non-performing rate is much higher than the industry average level.And due to its huge amount,if it’s not well supervised,it’s easy to cause systemic risks.This article is based on theoretical analysis,taking the JN Rural Commercial Bank’s implementation of various government regulatory policies as a specific case,forms a more comprehensive understanding of the implementation of relevant government regulatory policies,provide specific suggestions for the problems found in policy formulation and implementation,has certain practical significance for the current government supervision.The article takes JN Rural Commercial Bank as a typical case analysis.Use public management theories such as government regulation,information asymmetry,financial supervision and externality for guidance.The questionnaire survey method was used to investigate and analyze related issues,250 questionnaires were designed and distributed,and 235 valid questionnaires were recovered,and the questionnaire response rate was 94%.The questionnaire designs relevant questions from the three perspectives of macro-prudential supervision by the People’s Bank of China,micro-prudential supervision by the China Banking and Insurance Regulatory Commission,and the coordination effect of the two,and combined with the implement of the JN Rural Commercial Bank.The existing problems and their causes were investigated and analyzed.After analyzing the questionnaires,it is found that the overall financial supervision of rural small and medium commercial banks by government departments is effective,but there are still some problems and deficiencies in the supervision process.In response to the problems and causes,this article puts forward some suggestions: perfect financial regulatory laws and regulations,formulate differentiated regulatory policies;sort out various regulatory coordination mechanisms,improve the macro-prudential evaluation system;optimize administrative licensing regulatory policies,enrich financial regulatory methods;clarify regulatory positioning.Several measures have been taken to strengthen the endogenous motivation of the regulated institutions;several suggestions such as optimizing the construction of the supervisory team and improving the level of primary supervision to strengthen the government’s supervision of rural small and medium commercial banks.As the problems in the financial supervision of rural small and medium commercial banks gradually come into the eyes of the government supervision department,I believe that the relevant departments of the Chinese government will be able to improve and coordinate the supervision of rural small and medium commercial banks in the future to avoid major systemic financial risks.