Development Of Rural Banks In HeilongJiang Province

Rural finance is the center of the modern rural economy. China’s agricultural foundation is weak. The level of economic and social development in rural areas lagged far behind the city. And the income gap between urban and rural residents is growing. One of the important reasons for these problems is the serious financial "anemic" in rural areas. The establishment of rural banks is a useful exploration to establish various forms of main supply of rural finance. To a certain extent, it meets the financial needs of rural areas to supplement, improves the rural financial market and increases the financial support to the rural economy. The establishment and perfectment of rural banks has a big influence not only on farmers’ production and living, but also on economic development, political stability and social harmony of the entire country. Thus it becomes the focus and difficulty of the current rural financial system reform. The establishment and improvement of rural banking system is the important content of building a new socialist countryside. It is also the basic requirement of carrying out Scientific Outlook on Development and constructing harmonious society.In order to improve the rural financial organization system, activate of the rural financial market, and alleviate loans pressure of farmers and the rural small and medium-sized enterprises, Heilongjiang province started pilot rural bank at the second half of2008. By the end of2011, the opened rural banks in Heilongjiang province has reached17, and has a good momentum of development. The scale of deposit is bigger. The loan business grows rapidly. The capital adequacy rate is higher. The risk control is better than expected. But as a new rural financial institution, due to the establishment of a relatively short time, its lack of development and supporting system, it also faces a lot of problems. In view of this, based on the specific circumstances of Heilongjiang province, the paper investigates the development situation of rural banks in Heilongjiang province thoroughly, pointes out the main questions at present, analyses the internal and external environment, and uses quantitative methods to make a comprehensive evaluation of sustainable development ability of of rural banks in Heilongjiang province. The aim is to put forward the corresponding countermeasures and measures, in order to improve the core competitiveness of the rural banks in Heilongjiang province, optimize the internal and international environment, and promote the rural banks in Heilongjiang province health, well-ordered, sustainable development.By use of comparative analysis, Empirical analysis and other methods, the paper deeply studies on the specific circumstances of rural banks in Heilongjiang. On the basis of the development process of rural banks in Heilongjiang, the paper analyses the Status of the rural banking system in Heilongjiang and the problems. Higher operating costs, less business outlets, narrow business scope, difficult deposit, result in relatively low profit level. With the weak service object and inadequate collateral, the operating risk is big. These difficulties will have a long-term effect on survival and development of rural banks in Heilongjiang province.Through PEST-SWOT analysis, the paper analyses the strengths, weaknesses, opportunities and threats of rural banks in Heilongjiang Province, and the main factors of sustainable development of rural banks in Heilongjiang Province. On the basis of the evaluation index system from financial, customer, employee, business and risk dimension, the paper makes a comprehensive evaluation of rural banks in Heilongjiang Province, by use of principal component analysis and data envelopment Analysis. Accordingly, the paper puts forward countermeasures and suggestions for the sustainable development of rural banks in Heilongjiang Province from their own construction and external environment.Firstly, rural banks should actively seize the opportunity, take advantage to promote full development and take specific suggestions, such as clearing market position of rural banks, improving the management level of rural banks, strengthening risk control system. Secondly, we should increase policy system construction, promote the construction of credit system and rural guarantee system in the countryside, perfect supervision system construction, and speed up legislation system construction. In this way, we can create a good environment for sustainable development of rural banking system in Heilongjiang Province.