Analysis Of Operation Efficiency Of Village Banks In Jilin Province

The rural finance is always the weak link in our financial system. The weakening function of supporting policy for agriculture and the monopoly of rural credit cooperatives create our financial markets in imbalance and inefficient state. To solve these problems, satisfying diversity service requirements and connecting the gully between rural financial markets and the overall financial markets, village banks arise. Since the first village bank has been established in Jilin province, many doubts come out, which relate to the future development of village banks. However, relative to the falling behind and diversified rural financial markets in Jilin, there is still straitened circumstance to gain a foothold. Farmers measure that kind of banks focusing on whether they can give full play to their own operation efficiency according to local conditions, or whether they can bring benefit to farmers.The village banks in Jilin Province are many and all categories. Regardless of the integrated development or the former existing convergence in the financial organ engagement, those banks have the representation in the first-six national batch experiment provinces. Thus, the analysis on the operation efficiency of village banks in Jilin Province has the role of good reference and guidelines. With the premise of processors" research and the comparison of domestic and foreign village banks' analysis on operation efficiency, this paper may unify the rural finance theory, analyze the operation efficiency of village banks in Jilin Province, give the outline description from the partial model's real diagnosis, and propose the village banks' development strategy in Jilin Province.As this paper's innovation, firstly, in theory, proposed the flattening organization pattern may enhance the business efficiency of the banks as well as reducing the operation cost. The paper will explore the way of displaying the organized flattening pattern's superiority of the village banks. Secondly, with the actual situation of Jilin Province, the paper indicates that village banks in Jilin Province could use the property-debt management pattern rather than non-popular comprehensive risk management pattern. Finally, this paper may suggest possible methods through improving the credit risk managerial technique, reducing the non-performing loan ratio, and declining the ratio of supervision cost and operation cost to increase village banks'profit margins. In addition, there may be some help on rising the village banks'profit margins by increasing village banks'risk management level and decreasing the ratio of deposit.Based on the above background and innovation, this paper introduces two models on commenting operation efficiency of village banks in Jilin Province, which are DEA and SWOT analytical method. Use these two models to analysis operation efficiency of village banks in Jilin Province. The concrete study is as follows:(1) Based on the DEA model's bank efficiency analysis starts lately in our country, at the beginning of the 21st century, scholars used DEA analytic method to analysis operation efficiency of commercial bank, and this kind of research was much scarcer. Majority of this research in our country only used the fundamental model of DEA. However, the malpractice of this model is that it cannot carry on the further place, which has already been effective to DEA. In order to make up the questions above, this paper will use ultra efficiency model of DEA to conduct sample village banks'operation efficiency, based on the previous CCR model. The DEA method is mainly through inspecting village banks'horizontal difference between investment and output to survey the bank efficiency. Comparing the CCR model conclusion with the ultra efficiency model conclusion, this paper indicates that each sample bank's efficiency value can demonstrate under the ultra efficiency model survey. At the same time, according to the diagnosis result, we can also conclude that the overall efficiency of six village banks in Jilin Province is irregular. Besides of current different economic condition in their own area of jurisdiction, their operation-efficiency differences are also displayed on main business operational cost, main business income, aspect scale and etc. Thus, the better the target disposition is, the higher the efficiency of village banks is, and this result is the same as the present situation of these village banks. Therefore, we can conclude that regarding to the present village banks in Jilin Province, they must absorb more deposits, strengthen capital strength, and enhance the main business service's income level to raise the efficiency and the competitive power.(2) Another kind of quotation model is SWOT. It's an analysis method, which was proposed in 1980s by the management Professor Weihrieh in San Francisco University. It comprehensively analyses the enterprise's competitive strength, weakness, opportunity and threaten to get the results. Moreover, through combining the internal resources and the external environment organic synthesis, it can determine the object's superiority and that of flaw, understand opportunities and challenges at the same time, and analyze the object which implement achieves must realize from strategic and tactical stratification. The paper uses SWOT to analyze the strength, weakness, opportunity, and threaten of village banks in Jilin Province, and according to the related factors to propose four kinds of strategic combination expecting to achieve the sustainable development goal of village banks in Jilin Province. SO strategy combination defines that the village banks should grasp their own poverty relief superiority, using the exterior opportunity, to strengthen the self-image propaganda, and break the original agricultural credit monopoly system's limit. ST strategy combination is that the village banks in Jilin Province should display its first-level legal person's superiority to reduce loan examination procedure, optimize the loan pattern, and provide highly effective and convenient service. In this aspect, it can take example by "individual-cooperation center group-Grand Grameen Bank"pattern, which designs variety loan categories, and creates more and better farmer loan patterns. WO strategy combination can be defined as reducing the internal weakness, holding the exterior opportunity to seek the policy support. At present, the operation system of village banks in Jilin Province isn't perfect, so that it should strengthen internal staff training and infrastructural facilities. In addition, local government should also give village banks support on tax revenue, the social security, the subsidy and other support to enhance the financial firepower of village banks. WT strategy combination is explained that village banks in Jilin Province should clear their own lending scale and direction, and reduce the internal inferiority, as far as it is possible to strive for more advantageous profit space from the exterior threat, especially sending the cooperation with the line launched. Moreover, village banks with condition are also possible to open insurance, security and so on. Therefore, from SWOT analysis, village banks can accumulate the credit to realize the sustainable development, improve intermediate product, establish the guarantee system, and summarize the experience with the developing sustainable vigor.Certainly, this paper cannot include all the questions about the operation efficiency of village banks in Jilin Province. Suggestions given out may also have many difficulties in practice. This also need unify more correlation and practice to be success. However, this kind of banks create new mentality in rural area of Jilin Province, such as creating many kinds of new patterns to serve three agriculture, and these benefits leave the indelible trace for constructing new countryside and have promoted the whole rural finance in Jilin Province.