Research on Development of Village Banks
|School||Southwestern University of Finance and Economics|
|Keywords||village bank Commercialization of microfinance sustainability Micro-credit model Collateral model|
Third Plenary Session of the CPC 17 to promote rural reform in the resolution on the establishment of a modern rural financial system:"To develop micro-credit, to encourage the development for a variety of characteristics and micro-finance services for rural needs." Can be seen that China’s rural financial policy has been from the poor subsidize to the commercialists sustainable development ideas. The nascent village banks as a business-oriented micro-credit institutions is the practice of the idea. Therefore, as the commercialists micro-credit institutions, the study of the village banks is of great theoretical and practical significance.This paper first part review the village bank’s research literature, introducing the concept, connotation, extension of village banks, from the view of financial function, expand village banks to outreach to the commercialization of micro-credit, micro finance. Then the second part overview the commercialization of micro-credit for sustainable development literature:first, concept of the commercialization of microfinance’s sustainability, then from subsidies on agricultural credit theory and rural financial markets theory and the theory of imperfect competition market, analysis the sustainability of the amount of credit. And then review the commercialization of micro-credit conditions for sustainable development:Government to give policy support according to the actual situation, within a certain range of interest rate marketization, extensive absorption of savings sources of funding, the use of the social and moral constraints to improve acquaintances, also train loan officers to be familiar with local conditions, a certain degree of coverage of scale, Finally the relevant empirical research.Through the first and second part of the literature review we found:Theory of the commercialization of microfinance, sustainability issues studies are almost all based on the idea of a modern commercial banks, are trying to use modern commercial banks, mortgage-backed model to solve the small credit problem. In practice many of the micro-credits by modern commercial banks and mortgage-backed mode of operation, are difficult. From that point, the third part attempt to analysis the different of micro-credit and modern commercial bank credit, from the origin, business environment, loan objects, the nature of loans, transaction costs, risk management, indicating that micro-credit can not use modern commercial bank’s collateral model, but should take a suitable micro-credit model of its own characteristics, such as the GB model.Carrying out a full theoretical study of preparation, the fourth part of the research design an investigation and, obtain the relevant data based on research study design, through a comparative analysis of village banks, get the conclusion that village banks have filled in the gaps in rural financial services, and enhance the rural financial services, competition, promote economic development in the county, there are lending model innovation, but not enough, there is a reasonable size, and reasonable interest rates go up, positioning and other reasonable conclusion. but also found a lot of problems, so the fifth part analysis village banks in settlement difficulties, lack of policy support, deviate from the original intention of services "three rural" policy, based on these questions, give out policy recommendations:open up settlement of the channel, put out matching support policy, strengthen supervision.Inadequacies of this article:Since the opening of village banks, shortly wider geographical distribution,it can not be a comprehensive survey to obtain detailed data, then empirical analysis can not be precise, so the final investigation and analysis conclusion may be a lack of a strong persuasive.