Abstract Based on the principal-agent model and the regulators and the principal-agent relationship of village banks, the paper investigates how should the regulators optimize designs of incentive mechanism of village banks. The results show that to depend on a strict system of examination and approval in advance, not only cannot solve the goal conflict between regulators and village Banks, but also can restrain the development of village banks, and regulators should let go of barriers to entry, and focus on how to set up a reasonable incentive mechanism to guide the village banks to serve the agriculture development.
2015, Vol. 32 
