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Comparison Studies Of Foreign And Domestic Rural Banks

Posted on:2010-04-16Degree:MasterType:Thesis
Country:ChinaCandidate:Y Z XiongFull Text:PDF
GTID:2189360275497609Subject:Business Administration
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In March 2007, the first rural bank in China was established in Sichuan. The trial operation of the rural bank marked a new player in the China's rural financial service system. A new rural financial system of various kind and more flexible management is being gradually established. With the great development of countryside economy, the increasing farmers income and the improvement of the quality of farmers life, the rural places have financial needs both in quality and quantity, which also makes a stronger requirements for financial supply in rural areas.This thesis is aimed to make a comparison of Guangdong L Rural Bank, the largest domestic invested rural bank in Guangdong Zhongshan, and a foreign invested H rural bank in Fujian. By the rules of comparative analysis, significant differences on credit facilities offered are found though the deposit and loan structure. Guangdong L Rural Bank shows "deviation of the market orientation ". Since the two rural banks belong to domestic invested and foreign invested separately, the management of the two banks have significant difference on operation model. This paper gives further comparative analysis on the two rural banks trying to reveal the reasons for the "deviation of the market orientation" through the following five aspects: the history of international and domestic rural financing; the international and domestic financial system; the business models of foreign invested and domestic invested rural banks; the risk control management; the innovation capability of new financial products. Finally according to the causes of the difference of "market orientation", in light of Mackinnon and Shaw's theory of financial deepening as well as financial innovation theory, this thesis makes a series of strategy suggestions for rural banking, enable a profitable and sustainable development to solve the ''market orientation deviation" problem essentially.The thesis reflects the existing problem through the comparison of actual operation figures of rural banks with practical significance. The main point of this thesis is that the financial system and economic development have mutual relationship on promotion and influence. Only a sound financial system can promote economic development. This could be achieved by restriction of direct intervention by government, opening of interests rate, enrichment of financial products, expansion of rural financial services and the offer for the development of new market-oriented financial services.
Keywords/Search Tags:rural bank, comparative analysis, financial innovation
PDF Full Text Request
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