Research On The Sustainable Development Of Chinese Rural Banks

Since the China Banking Regulatory Commission (CBRC) promulgated the suggestions about easing and adjusting access policy of rural banking financial institutions to better support the construction of new socialist countryside on December20th,2006, Village Banks started from scratch, from less to more, at present has entered a stage of rapid development. As a kind of new rural financial institution, the rural bank is powerful reform practice of the standardization of China’s rural financial institutions and an effective way to solve the shortage of rural financial supply. Although the rural bank plays a positive role in increasing the financial supply, activating the rural financial market, improving the rural financial system, but new rural bank as a new thing, together with the complexity of the rural financial problems in our country, some problems inevitably appear in the process of its development. So, researching the sustainable development of rural bank in our country to promote the healthy development of rural finance and the new rural construction is of profound and extensive practical significance.Based on absorbing the domestic and foreign scholars’research achievements and summarizing several tiny foreign bank sustainable development model, with reference to relevant theories, and synthetically applying the macroscopic analysis and the microscopic analysis, this thesis mainly explores the sustainable development of village Bank from the aspects of the insufficient support of agriculture, the financing bottlenecks and lack of talents and so on, then put forward some advice.In a broad sense, two jobs need to be done for the sustainable development of rural bank, one is the correct selection of the market, the other is the well control of the risk. Rural bank’s market positioning should be based on serving the "three agricultural". However, the current problem existing in rural bank is the insufficient serve for the "three agricultural". Aiming at this, detailed analysis has been made to put forward efforts on solution of "relationship lending" business of rural bank with reference to American community banks, foreign microfinance institutions and the successful experience of our country folk lending.Commercial bank risk can be mainly divided into:liquidity risk, operational risk and credit risk. Limited in length and mentioned that rural bank should develop relationship lending strenuously, bank lending to the familiar but not a stranger so that bank credit risk will be reduced, this thesis does not explore the bank credit risk specially. As for the control of rural bank risk, this thesis mainly focuses on liquidity risk and operational risk. Rural bank liquidity risk, embodied in the too high deposit-loan ratio, shows the problem which is rural bank capital bottleneck. This thesis also analyzed the problems and reasons of the lack of funding sources of rural bank respectively from two aspects of equity financing and debt capital financing, then put forward the targeted solution. Knowledge and theories, such as the social roles and social interaction in sociology, were quoted to better the cooperation between village Banks and agriculture and other rural financial institutions. Commercial Banks operating risk identification is mainly divided into:human factor, business processes, information systems, external events. The author believes that the bank staff, business processes and information systems, ultimately, has been associated with bank staff. Rural bank, therefore, is to reduce the operation risk, it must have a high quality and professional talented team. The current situation shows the problems of lack of talents in rural bank. This thesis analyzed the reasons for the lack of talents in rural banks, and then put forward the countermeasures and suggestions from the aspects of introduction of talents, retaining talents and training talents, etc.