Research On The Sustainable Development Of China’s Rural Commercial Banks

Rural financial reform has been very crucial in China’s financial reform. Whether rural financial can achieve commercially sustainable management through the mechanisms and institutions reform, has been a matter of academic circle and decision makers. As a major part of rural financial system, the sustainable development of Rural Commercial Bank attached more attention of the social. Since the start of Rural Credit Cooperatives reform in 2003,Rural Financial Bank increased quickly and after ten years development, it improved greatly in both market share and risk control ability. Its corporate governance structure is also maturing, which has made important contributions to promote China’s rural economy development. However, the development of Rural Commercial Bank is extremely imbalanced due to different market environment and economic background, some Rural Commercial Bank show a strong comprehensive strength and sustainable development ability, while a small number of them grow slowly and their sustainable development ability need to be improved. Lu Lei, Research Bureau of Central Bank, pointed out "endogenous growth and sustainable development is the goal of China’s rural finance construction" on " China Rural Financial Services Report(2014)". Therefore, research on the sustainable development ability of Rural Commercial Bank and its influence factor have important significance on the construction of China’s rural financial system and the healthy development of rural economy. Taking the factors affecting the development of rural commercial banks as starting point, this paper will analyze the current development state of China’s Rural Commercial Bank and find ways to achieve sustainable development of Rural Commercial Bank.Learning from the performance evaluation system of the World Bank on rural financial institutions, it build up our sustainable development evaluation system for Rural Commercial Bank. By collecting 10 Rural Commercial Banks’ comprehensive data based on their annual report from 2010 to 2013 in China, comparing their sustainable development ability by using CRITIC and AHP analysis method comprehensively which can reflect objective data information subjective information separately, this paper reach to the following conclusions : First, different factors have different influence proportion on the sustainable development of Rural Commercial Bank in different years. The corporate governance structure, profitability, growth ability, innovation ability and risk control ability are the most important among them. Second, the sustainable development ability of each Rural Commercial Banks are different, two of Rural Commercial Banks in the western region show greater development potential, some of them in the eastern region are weaker, two of them in the central region are lack of motivation. Third, the development of majority Rural Commercial Bank tend to improve, their overall strength increased year by year, sustainable development ability is gradually taking shape. So, in order to promote the sustainable development ability, Rural Commercial Bank should take suitable measures, make efforts from all aspects and cooperate with each other in the background of the accelerating pace of rural economic development and social transformation.