Study On The Sustainable Development Capacity And External Influencing Factors Of Rural Banks In Fujian Province

In order to solve the problems of insufficient financial supply and insufficient competition caused by the low coverage of financial outlets in rural areas of China,in 2006,China Banking Regulatory Commission(formerly China Banking Regulatory Commission)launched three new types of rural financial institutions including village banks.It has been 12 years since the opening of the first village bank.In the past 12 years,the number of village banks has grown rapidly,and to a certain extent,it has alleviated the problem of insufficient financial supply in rural areas.The emergence of rural banks has indeed played an irreplaceable role in the development of financial and economic development in rural areas.There are many problems in its own development,which hinders its long-term development.Rural banks have the responsibility to serve the three rural and small micro-As a company,it should also consider its own sustainable development issues.Fujian Province also implemented pilot projects in Jianye and Yong’an counties(cities)in 2008.After more than ten years of development,by the end of 2018,the number of village banks in Fujian Province has reached 53,and some of them have a good momentum of development.However,some rural banks have encountered difficulties in their development that hinder their sustainable development.In view of the in-depth investigation and analysis of the rural banks in FujianProvince,this paper identifies the main problems that may hinder the development of rural banks in Fujian Province.Under the premise of adapting to the four principles of adaptability,comparability,effectiveness and availability,11 indicators were selected from the three dimensions of financial dimension,business dimension and risk dimension for the sustainable development of 50 rural banks in Fujian Province.The reference index of capability,then factor analysis method was used to find out the four principal component factors affecting the sustainable development of rural banks.Through the analysis of the four principal component factors,it was found that the profitability,liquidity and safety of rural banks were affected.The main factor of the sustainable development ability of the rural banks,the contribution rate of variance reached 80.596%,and then the factor comprehensive index F as the dependent variable,using multiple regression models to explore the external factors that may affect the sustainable development of rural banks,empirical results show that local finance The ability,the proportion of the main sponsoring investment,the proportion of the tertiary industry,different main sponsoring lines and the disposable income of the resident population have a significant impact on the sustainable development of the rural banks.Finally,based on the results of the empirical analysis,six recommendations were made from the perspective of the regulator,the main sponsoring bank and the villagebank itself.