Analysis On The Development Of Rural Commercial Banks

Since2003, the government introduced a series of policy support to promote the development of rural finance. In this context, rural loans continued to increase, financial services has covered most of the rural areas and financial services in rural areas has experienced a significant improvement, all these have promoted the development of agriculture. According to The Rural financial services report of2010released by the Central Bank, by of the end of2010, the agriculture-related loans of all financial institutions reached11.77trillion RMB, an increase of5.65trillion RMB compared with2007. Agriculture, forestry, animal husbandry and fisheries loan balance was2.3trillion RMB, an increase of about800billion RMB by the end of2007.But rural finance is still weak in China’s financial system, the level of rural finance development has become one of the main factors restricting the construction of new rural economy. Currently, three types of rural financial system coexisted in China mainly including cooperation in financial institutions, commercial financial institutions, and policy financial institutions. Among them, the rural credit cooperatives, including rural cooperative banks and rural commercial banks is the main force of rural financial institutions, mostly in a monopoly position in the vast rural areas. Due to the absence of the main competition, part of the rural credit cooperatives still stick to the original concept of the traditional doing, resulting in lower service level of business management and inefficient operation. In order to effectively promote the reform of rural credit cooperatives, the China Banking Regulatory Commission proposed the direction of the joint-stock reform of rural credit cooperatives and encouraged the construction of rural commercial banks or joint-stock.Xinyi Rural Commercial Bank is refromed from Xinyi Rural Credit Cooperative Union. In2008, the the Xinyi Credit Cooperative Union restructured into Xinyi rural cooperative banks and in2011, established Xinyi Rural Commercial Bank. After that, Xinyi Rural Commercial Bank has greatly improved in asset quality, corporate governance and innovation capability. But Xinyi Rural Commercial business innovation is confined primarily to supplement and update the traditional business, lack of its own features.This paper systematically analyzed the development status and competitive market of the domestic rural financial market, especially the reform of rural credit cooperatives and concluded that the Rural Commercial Bank is best for Credit Cooperative Union. Then, through the in-depth analysis of the sun credit loan products for farmers and micro-companies in rural areas of Jiangyan City, this paper summarized the product innovation experience of the rural commercial banks. Finally, based on industrial experience, this paper made some suggestions for domestic commercial banks in rural areas and the relevant regulatory, to provide some reference for rural financial institutions.