The Cooperation Modes Of Big Commercial Banks And New Rural Financial Institutions Based On Competitive Advantages

The rural financial market is imcomplete and the financial supply is not sufficient. This situation has limit the development of econmy in rural areas for a long time. There are many reasons leading to this situation, and the important one is that complementary advantages of large commercial banks and the new rural financial institutions have not been played effectively. Practice in China has proved that the cooperation between large commercial banks and new rural financial institutions can improve the supply of rural finance, and both sides benifit from it, but there are still many problems in the cooperation. Therefore, it’s important to choose the appropriate cooperation mode to play their competitive advantages effectively and serve agriculture better.This paper firstly introduced the small bank advantage theory, transaction cost theory and cooperation-competition theory. Then analyses the necessity of coorperation between big commercial banks and new rural financial institutions from the view of competitive advantages,and the feasibility from the view of game theory. Afterwards,this paper introduces five coorperation modes including establishment, wholesale loans, entrusts acting, resource sharing and cultivation. Following, assessing the effect of exsitting coorparation modes in our country. We find that the overall effect is good but there are still many problems. On this basis,analyses the equilibrium condition and influencing factors of the five modes with game theory. The results show that there many influencing factors and these factors can fall into three categories, including revenue factors, safety factors and stability factors. If one factor can increase revenue,or improve the security and stability of cooperation, it is a positive factor;conversely,a negative one. To promote the coorperation between big commercial banks and new rural financial institutions, its necessary to strengthen the positive factors and weaken or eliminate the negative factors.At last, gives suggestions about promoting the coorperation from the view of big commercial banks, new rural financial institutions and goverment.