Development of Rural Banks in Yellow River Delta

The current status of new-type rural financial institutions in the Yellow River delta is summarized. It is pointed out that these financial institutions have improved the development of economy concerning agriculture, rural areas and peasants, but due to the shortage of capital, deficit and many other reasons, the outlets is fewer, which can not serve the agriculture, rural areas and peasants well. The necessity of developing rural banks in the Yellow River delta is introduced: in the first place, rural banks can serve the agriculture, rural areas and peasants well with flexible system and management methods. Secondly, rural banks can serve and support the vulnerable groups of the three rural issues concerning agriculture, countryside and famers well. Thirdly, the rural bank provides strong support for the comprehensive development of rural business concerning the agriculture, rural areas and peasants. Fourthly, rural banks have significant advantages in serving the agriculture, rural areas and peasants. The probability of developing rural banks in the Yellow River delta is analyzed from the three advantages of policy, environment and economy. The challenges faced by the development of rural banks are studied as follows: firstly, the short-term gains are hard to take effect. Secondly, the capital quantity of rural banks is large. Thirdly, the pressure of competition and operation is great. Thus the countermeasures of developing rural banks in the Yellow River delta are put forward: for instance, clarifying the service object in a certain area; using the minority to bring along the majority; reducing the risk of asymmetric information by information technology.