China Rural Commercial Bank’s Sustainable Growth: Measurement And Evaluation

The world economy went through chaotic years of the international financial crisis and recession, and now is getting into the difficult recovery"International Financial Crisis Period". The enterprises have been involved in a turmoil and uncertain complex environment system, in which. The Chinese bank industry is operating steadily with asset scale maintaining a fast growth in recent years. At the same time, it also faces fiercer and fiercer competition, due to international financial systemic risk of deterioration of the environment and market reformation.Under the pressure of this fierce competition, it is questionable whether China rural commercial banks serving’agriculture, rural areas and farmers (called SanNong)’can keep sustainable growth. Theoretical analysis and evaluation of sustainable growth are urgent tasks for these banks, Which are a main force of China bank industry. In view of the importance of SanNong and the significance of the rural financial reform, the theoretical analysis and evaluation of China rural commercial bank’s sustainable growth do have theoretical value and practical significance.Based on the above the background and understanding, this paper focusing ’the theoretical analysis and evaluation of China rural commercial bank’s sustainable growth’, probes the empirical evaluation of the sustainable growth, by using the regulating theoretical analysis and empirical research, and the research methods of quantitative research and qualitative analysis. This paper is divided into six parts:Chapter 1, Introduction. This chapter presents research background, and then puts forward the research question, demonstrates the purpose and significance of the research, introduces the main contents and the research methods of the study, as well as the research technical route and frame structure. At the same time, this chapter points out the innovation points and limitations.Chapter 2, Theoretical basis and related literature review. This chapter presents a literature review of the related theoretical basis and the sustainable growth evaluation of the commercial bank, the aim is to provide the theoretical preparation for the theoretical analysis and the empirical research of the later chapters. These theories include the enterprise competitive power theory, the enterprise sustainable growth theory, the financial sustainable development and evaluation theory, and the total factor productivity (TFP) measurement theory.Chapter 3, The analysis of the causes and mechanism of China rural commercial bank’s sustainable growth. Based on chapter 2, the concept of the enterprise sustainable growth, the causes and mechanism are theoretically discussed. Through analysis, this chapter builds up the frame of the multidimensional conceptualization and the model of the causes and mechanism of the enterprise sustainable growth.This chapter also introduces China rural commercial bank’s present growth, analyzes the present situation and operating characteristics of China rural financial market, introduces China rural financial organization system and China rural commercial bank’s growth characteristics, and points out the problems of China rural commercial bank’s growth. In addition, it states the connotation, the causes and mechanism of China rural commercial bank’s sustainable growth, puts forward the mechanism model of the sustainable growth and the index system of the sustainable competitiveness of China rural commercial bank.Chapter 4, The measure and evaluation analysis of China rural commercial bank’s sustainable growth. On the basis of the theoretical analysis of the enterprise sustainable growth in chapter 3, this chapter extends to the measure and evaluation analysis of China rural commercial bank, puts forward the measure model of the evaluation of China rural commercial bank’s sustainable growth, and according to the measure model, make a selection of the evaluation methods. At last, introduces three kinds of the empirical evaluation’s methods:the analytic hierarchy process (AHP), data envelopment analysis (DEA) and Malmquist index model, the growth rate of the financial index analysis method.Chapter 5, The empirical analysis of China rural commercial bank’s sustainable growth’s evaluation. According to the measure model of China rural commercial bank’s sustainable growth, selects 11 representative rural commercial banks of the east, the central and the west of China as samples, uses the three evaluation methods of China rural commercial bank’s sustainable growth (AHP, DEA-Malquist index model and financial analysis) to do empirical analysis to China rural commercial bank’s sustainable growth. At last, the results of the three empirical methods are comparatively analyzed.Chapter 6, The research conclusion, countermeasures and prospect. This chapter summarizes the research result of the full text, sum up the research conclusion, puts forward some research countermeasures of the writer. At last, the limitations of this research are analyzed and the future segmentation research fields are discussed.The main conclusions of this paper are:1. From the analysis of the whole industry of China rural commercial bank, it presents a sustainable growth during the inspection period (2007-2010).2. From the analysis of the individual of China rural commercial bank, by comparison with the west, it is more obvious that China rural commercial bank of the east sustains growth. The east has more regional competitive advantages, the central and the west need to improve the sustainable competitiveness, enhance the sustainable growth.3. The growth rate of the financial index analysis method is not fit to be the evaluation method of China rural commercial bank, but could be the reference method to estimate the whole industry’s sustainable growth. By using the growth rate of the financial index analysis method, the different rural commercial banks’ sustainable growth is analyzed; the results rank inconsistent, show too much randomness. This verifies that the multidimensional measure of China rural commercial bank is scientific and reasonable. But at the same time, this method is simple, and by it the statistics are easily gained. Average annual growth rates of various financial indexes are integrated to be the reference to estimate the whole industry’s sustainable growth.4. The analytic hierarchy process (AHP), data envelopment analysis (DEA) and Malmquist index model are the better evaluation method of China rural commercial bank, DEA-Malmquist index model is applied widely. AHP is fit to evaluate China rural commercial bank’s sustainable growth. DEA-Malmquist index model is fit to evaluate the individual bank and the whole industry.In order to evaluate the sustainable growth, this paper makes use of AHP to measure the sustainable competitiveness of the rural commercial banks, and DEA-the Malmquist index to measure total factor productivity of the rural commercial banks. The rankings derived from the samples of the rural commercial banks by these two methods are broadly similar, two evaluation methods have the different measure perspective for the sustainable growth of the rural commercial banks, but the measure results are similar, it shows the two evaluation methods are reasonable and scientific.5、This paper builds up some theoretical model through the qualitative analysis, draw the following theoretical conclusion:puts forward the frame of the multidimensional conceptualization and the model of the causes and mechanism of the enterprise’s sustainable growth and China rural commercial bank’s sustainable growth, thinks the enterprise’s sustainable growth and the rural commercial bank’s sustainable. growth are multidimensional characteristic;thinks the cause of the enterprise’s sustainable growth and China rural commercial bank’s sustainable growth is the sustained competitiveness; Establishs the index system of the sustainable competitiveness of the enterprise and China rural commercial bank, points out geographical position is the important index that cause the differences between sustained competitiveness of China rural commercial bank; builds up the measure model of China rural commercial bank’s sustainable growth and selects evaluation methods, thinks that we can measure and evaluate rural commercial bank’s sustainable growth from the cause perspective and the result perspective through the combination of subjective evaluation method and objective evaluation method.6. The empirical results show that the rationality of the design of the theoretical model in this paper. By comparative analysis of the rankings three kinds of empirical methods for sustainable growth of each rural commercial banks ranking, Rural Commercial Bank of sustainable growth of multi-dimensional concept, mechanism model, rural commercial banks continued competitiveness index system and Chapter 4 rural Commercial Bank of sustainable growth measure model are reasonable, but the empirical results also show the existence of various errors, the theoretical model of the design there are not precise enough.The main innovations of this paper are:1. This paper puts forward the mechanism model of the sustainable growth of China rural commercial bank. Based on the concept of the enterprise sustainable growth, the causes and mechanism, this chapter puts forward the mechanism model of the enterprise sustainable growth and the mechanism model of the sustainable growth of China rural commercial bank, explains the internal motive and environmental effect mechanism in which leads to the sustainable growth of China rural commercial bank.2. This paper builds the rural commercial bank sustainable growth measure model, and choosing evaluation methods based on the measure model. The measure model from two perspectives (cause and result),choosing three empirical evaluation methods to estimate China rural commercial bank’s sustainable growth.3. This paper expands the general enterprise (or China’s rural commercial bank) sustained competitiveness index dimension. The paper inherits and refers the experience and the research foundation of Tihomir Hunjak (2001), expands the general enterprise (or China’s rural commercial bank) sustained competitiveness index dimensions, increases the difference environmental factors dimension index (or location dimension index). The paper makes Tihomir Hunjak’s experience be appropriate for China national conditions.In short, this paper have many innovation in enterprise sustainable growth concept, mechanism analysis, enterprise sustainable competitiveness index dimensions composition, China rural commercial bank’s sustainable growth measurement, rural commercial bank sustainable competitiveness index system construction, sustainable growth measure ideas and evaluation methods selection and so on. This paper made meaningful exploratory work for applying the general enterprise sustainable growth theory and research method to a specific industry.