The Analysis Of The Profitability Of Rural Cooperative Financial Institutions

Profitability, safety and liquidity of commercial banks are the three basic principles of bank managements; profitability has been the first principle of commercial bank management. The improvement of profitability is able to maximize the substantial capital and to control the bank risk. As an important part of the financial system, rural cooperative financial institutions are mainly in deposits and loans. As the main force of rural financial services, rural cooperative financial institutions have been in a leading position in China's rural economic development to provide the financial support.However, due to many historical and practical reasons, rural cooperative financial institutions have many problems, their profitability is low, and therefore they do not have much market competitiveness. By the reason of institutional rigidities and other factors rural cooperative financial institutions have a lot of problems, but lack of profitability is still its biggest problem. Qingdao has a relatively high level of economic development, and economic agents are active, the level of financial development is in the leading level in Shandong province, the city has many financial services institutions. The development model of Qingdao will be the good example for the other cities in Shandong Province. Therefore, by studying the profitability of rural cooperative financial institutions in Qingdao and the corresponding policy recommendations for promoting the reform of rural cooperative financial institutions will has an important theoretical and practical significance to improve the development of rural economy.This article is divided into five chapters. The first chapter is the Introduction, including the background of the thesis topic, purposes, methods of the research and ideas for the contents; The second chapter defined the two concepts of the rural cooperative financial institutions and profitability, we also reviewed the studies both at home and abroad; The third chapter first studied the development of domestic rural cooperative financial institutions, and then built an index system to evaluate profitability of rural cooperative financial institutions, we also studied the profitability in empirical analysis; the forth chapter analyzed the factors that influenced the profitability of rural cooperative financial institutions in Qingdao; The last chapter gives the suggestions to enhance the profitability of the rural cooperative financial institutions in Qingdao.