Operation Distress And Development Strategy Of Wugang Baoshang Village Bank Management

Village banks is put forward in the process of socialist construction.We need acomprehensive and competitive rural financial system to support the socialistconstruction.The established of village bank, representing a new type of financialinstitution was emerged.On the purpose of serving for the village and local area,village bank upgrade the agricultural industry as soon as possible advancing thehealth development of rural economic.By gathering the capital of farmers andmedium-sized enterprises, the village and township bank can guide capital return fromcity back to rural areas and drive the entire financial ecological environment.It isgreat significance in the establishment of village bank to provide useful experience inreforming the rural financial system.By studying on the basic information of corporate governance structure andoperating status from the basic conditions of Wugang Baoshang village bank, itconfirms the rapid development in past two years. However, by using the AHP to testthe performance, sustainable development, risk control and regional economicdevelopment of the Wugang Baoshang village bank, turns out that the bank representspoor performance on profitability and lack of sustainable development. The operationdistress of Wugang Baoshang village bank mainly perform on the poor businessperformance and the high risk of the bank. The main reasons for the above mentionedproblems are the uncleared market position, imperfect of corporate governance,inadequate government support. In order to improve the operation of the village bank,it needs to addressed from internal and external aspects. Firstly, by broadening thefinancing channels, improving the corporate governance structure and business modelinnovation, can solve the above problem. Secondly,increasing government supportand improve the financial supporting policies can create a favorable environment forthe village banks.