Research On Development Strategy For Rural Credit Union Of Kongtong District,Pingliang City

In June 2003,a new round of reform of rural credit unions began officially.Until now,more than 10 years have passed since the current round of this reform.China's financial environment has undergone tremendous changes.Foreign commercial banks have opened branches in different places.Owned commercial banks return to the "three rural" impact,so that China's financial markets,especially the banking industry with unprecedented fierce competition,and white-hot,combined with the impact of financial turmoil and China's economic restructuring and upgrading of labor pains.In 2006,in order to solve the problems of low coverage of banking outlets in rural areas,serious shortages of financial supply,single financial products,bad financial services,the oligopoly of financial supply,insufficient banking competition that impacted China's rural area economic and social development,China Banking Regulatory Commission began to study the development policy to classify and guide domestic and foreign bank capital,industrial capital and private capital to the vast rural areas to participate in the creation of rural banks,the establishment of small loan companies and the construction of mutual aid and many other new rural financial institutions.Under this big background,it is a new and urgent project to study how the Rural Credit Union of Kongtong District,Pingliang City,can use the strategic management theory to formulate the appropriate development strategy to stand out in the fierce banking competition and improve the competitiveness and serve the local economy development.Based on the economic and social development in Kongtong District,Pingliang City,this paper,with reference to the history and characteristics of the rural credit unions in China,the development experience of the developed countries and the reform and development policies of the rural credit unions in our country,takes Pingliang City Rural Credit Union Strategy as the main research content.Through the macro-environment analysis,it is concluded that the development of financial industry in Kongtong District,Pingliang City,has a bright future,but the development of rural credit unions in Pingliang city is lagging behind.By June 30,2015,the deposit balance of financial institutions in the region 20,110.45 million yuan,Rural Credit Union of Kongtong District,Pingliang City,share 18.53%.The region's financial institutions had the loan balance of 13,322.04 million yuan,accounting for 22.01%.Kongtong District Pingliang City Rural Credit Union accounted for 42.38% of the network outlets,the average net balance of deposits was 88.72 million yuan,accounting for only 49.41% of the average region's financial institutions deposits,the scale of development was behind 50.59%.Net loan balance was 69.81 million yuan,accounting for 58.69% of the average loan balance of financial institutions in the district and the development scale was behind 41.31%.After the analysis of the internal environment,it is concluded that the existing system and management mode in Rural Credit Union in Kongtong District,Pingliang City,restricted the development of the business,there the reform is imminent.Through the analysis of the feasibility of establishing Pingliang Rural Commercial Bank,it is concluded that the economic society of Kongtong District,Pingliang City,especially in rural areas,needs financial support from modern commercial banks.Rural Credit Union of Kongtong District,Pingliang City,accord with the formation of rural commercial bank conditions.By June 30,2015,the overall assessment of assets after the net capital of Rural Credit Union of Kongtong District,Pingliang City was 446.64 million yuan.By now,the equity transformation has been completed in accordance with the related documents by the China Banking Regulatory Commission.The formation of Pingliang Rural Commercial Bank intends to raise additional shares of 289.44 million yuan,the registered capital intends to reach 600.00 million yuan.It is urgent to set up Pingliang Rural Commercial Bank using the modern financial enterprise system strictly,implement the corporate governance structure,establish the incentive and examination mechanism,take the community bank road,and truly become one of the most important banks in the area.According to Rural Credit Union of Kongtong District,Pingliang City,asset growth rate,the net asset size of the next three years will reach 3,978.60 million yuan,with total assets 9,140.87 million yuan.By the end of 2018,the deposit market share reached 21.60%,and the loan market share increased by more than 1.30% per year.The market share of the loan market reached 25.20%.According to the total profit growth rate of Rural Credit Union of Kongtong District,Pingliang City,the newly formed Pingliang Rural Commercial Bank is expected to profit 102.84 million yuan in 2016,155.55 million yuan in 2017,and 213.20 million yuan in 2018.Through the research on the development strategy of Rural Credit Union of Kongtong District,Pingliang City,it can be concluded that in the course of the reform of rural credit unions,the requirements of China Banking Regulatory Commission should be strictly implemented,taking the market economy as the base,the corporate legal system as the main body,limited liability system as the core.Also clear property rights,clear responsibilities,separation of government and management,scientific management conditions for the modern financial enterprise system is imperative.It is not only feasible,but also necessary and far-reaching to set up the rural commercial banks,take the development path of the community banks,realize the differentiation management,build the one-stop service network,enhance the competitiveness,increase the staff income and strengthen the local economic strength.