On the Sustainable Development for Village Banks in China
In order to solve the dilemmas involved in rural financing, in 2007 Chinas Banking Regulatory Commission (CBRC), with the consent of the State Council of China, began a pilot project of village banks in some provinces and cities.The emergence of village banks (VB) has increased financial supply, enhanced competition in the rural financial market, and created a Pareto improvement effect in the corresponding institutional change of rural finance.Since the main purpose of traditional commercial banks is profit maximization, these banks typically avoid involvement with Chinese rural financial services because of the relatively high cost, low income, and high risk associated with these services.Therefore, the absence of a variety of institutions has led to the absence of competition in rural areas.As a result, village banks are faced with some pressing problems to solve with regard to development.The most urgent problem is restrained sustainability due to the deviation from targeted positioning, fund shortages, and loan risk.In order to effectively resolve these problems, the best solution is to both adhere to government guidance and follow the laws of economic and financial development in rural areas, while simultaneously balancing the interests of various parties including the government, banks, shareholders, farmers, and so on.Moreover, great effort should be made to build a better property rights structure for village banks,as well as a governance mechanism for stakeholders and improved regulatory systems for village bank loan services.In addition, a joint guarantee mechanism among members of mutual funds cooperatives should be established along with an improvement to interrelated laws.
Rural finance Village banks Financial reform Sustainable development
LI Rui
School of Civil and Economic Law,China University of Political Science and Law,Beijing,P.R.China,100088;School of Humanities and Law,Beijing University of Agriculture,Beijing,P.R.China,102206
国际会议
2013 International Conference on Public Administration (9th)(2013年第九届公共管理国际会议)
南非
英文
1114-1124
2013-10-31（万方平台首次上网日期，不代表论文的发表时间）