The Chinese government's working papers proposes to strengthen the financial institutions to serve the "three rural functions". Among them, the village banks play a very important role. We have noted that village banks have become a positive force in the rural financial system, in the development of inclusive financial system and in the support of rural socio-economic development. However, the issues on information and trustworthiness have hindered the development of rural public funds such as village banks, resulting in signs of detachment of such banks from villages and towns in recent years. In this regard, the relevant departments should develop different regulatory policies and development models based on the inherent characteristics of the village banks to ensure that the village banks will be based in the rural areas to support the agriculture.