Research On Yinzhou Bank’s Strategy Of Developing Village Banks

In order to solve the long-term starvation of financial resources in rural areas, thus support and promote the development of rural economy, the China Banking Regulatory Commission has relaxed the entry requirements since 2006, to encourage banks establish village banks. The Yinzhou Bank view village banks as its own important opportunity, it has invested 548 million in 7 years, establishing 24 village banks, and achieved certain results. But as a small regional bank, The Yinzhou Bank holds relatively sparse resources. When the village banks have rapidly grown up, the Yinzhou Bank suffered management bottleneck, its capital accumulation cannot keep up with the village banks’ speed of consumption, its human resources reservation cannot satisfy the village banks’ needs. How to develop the village banks, become a problem placed to the Yinzhou Bank.This paper, taking the basic process of enterprise strategic research as the framework, analyzes the Yinzhou Bank’s strategy on developing village banks. The main contents include strategic analysis(analysis of external environment and internal resources), strategic choice and strategy implementation. Among them, this paper uses the PEST analysis model and Potter’s five forces model to analyze external environment, finding that the political, economic and technology factors are good for the Yinzhou Bank to develop village banks; this paper analyzes the Yinzhou Bank’s internal resources, finding its manangement can satisfy village banks’ needs, but its financial resources, human resources have been close to saturation; this paper analyzes the strategic choice, finding its advantages are about innovation but not costs, its scope of competition focus on rural areas, rather than the whole industry, thus this paper clears the bank of Yinzhou should adopt the focused ifferentiation strategy, and this peper also rises the strategy implementation in terms of distribution adjustment, business development, risk control.