The Developing Suggestions Of A Rural Bank

In recent years, the Party and the government have attached great importance to the development of agriculture and the rural economy as well as the improvement of the living standards of farmers. The development of rural economy is inseparable from the support of the rural finance. However, the lack of supply and competition of finance in rural area has become the key obstacle which impedes the development of the rural economy.It is necessary to fundamentally change the mind in the reform of rural economy system, in order to solve the problem of shortage in rural economy. The emergence of rural banks fulfills the demand of change above, which promotes the construction of a competitive rural financial market to a certain extent.However, for they are at the initial stage of exploration, there are many constraints in the development of rural banks, such as operational risks, the lack of capacity for sustainable development, and weak competitiveness, which weakens the impact of solving the three agricultural problems by the rural banks. Thus, it is a must to list, analyze and solve the problems in the operation of rural banks in order to promote its sustainable development.The significance of this paper is to analyze the operating conditions of A rural bank that is a representative rural bank in pool western China in the place of analyzing the rural banks of whole China, in order to find the developing problems of the rural banks, to provide specific developing suggestions to A rural bank based on the study of successful experience of rural bank abroad and to explore the sustainable developing way of rural banks in western China.This paper consists of six chapters.The sequence is to clarify the backgrounds and purposes of this paper, the main research methods as well as the theoretical basis and literature review.The second contents of the first chapter include explanations of the definition and the characters of rural banks, the introductions of the establishment and the development of rural banks in China in the aspects of operating conditions, the size of the registered capital, and the types of initiating banks.The third chapter is to demonstrate two successful international modes of the rural banks, namely the Grameen Bank Mode and the BRI-UD Mode, to analyze the characteristics of each and to summarize some relevant experience.On basis of the analysis in the above chapters, the fourth chapter is to introduce the operation of A rural bank in the way of analyzing its operational characters and problems. The first is to introduce the economic and financial environment of B city in which A rural bank operates and to analyze the problems of B city’s financial market. Then is to analyze A rural bank’s operating conditions in terms of deposits, loans, customer structure, loan management model and features of financial products and to summarize the current achievements and the main problems.The fifth chapter is to summarize the strengths and weaknesses of A rural bank and its opportunities and challenges in the SWOT method.The sixth chapter is to provide the future developing suggestions of A rural bank in aspects of strategic positioning, to corporate governance, asset and liability management, business development, risk management, internal control systems, personnel development, and information technology security support.