Study On Commercial Sustainable Development Of China's Village Banks

The emergence of village banks has changed the original reform ideas from the "stock" reform into an "incremental" reform, it is the reform of China's rural financial institutions in the history of innovations, marking China's rural banking financial institutions will entered a new stage of development, their health, sustainable development has special significance to China's rural financial reform, solving the "three rural issues". The four major indicators of sustainable development of villages and towns is the ability of banks to mobilize savings, capital recovery rate, profitability and the ability to extend loans. Product and service innovation capacity, policy support, staff the quality are these three factors which affect the different levels of the four indicators. This paper used (AHP) level of analysis, concluding expert commentary, combined with China's reality, analyzing three factors on China village commercial banks to the importance of sustainable development to guide the implementation of village banking business sustainable development strategy for strategic choice.This paper is divided into four chapters, the whole idea is: It proposed the problems in Chapter 1; it gives an analysis of the relevant issues in Chapter 2; we establish a model to solve the problems in Chapter 3; Chapter 4 gives us some recommendations based on the results.Chapter1, Introduction. This study introduced the background, significance, and concluded literature, summing up the literature based on the research question: Regarding the three kinds of scholarly opinion (to increase policy support, strengthening the workforce, and enhance their product and service innovation), for the village banks with a limited economic base, which is more important for commercial sustainable development of the village banks, which one should we concentrate on first?In Chapter 2, we give a factor analysis about the sustainable development of village commercial banks. The main purpose is to analyze problems and prepare for the modeling analysis in Chapter 3. There are three aspects: First, make assessment of the four indicators: savings mobilization capacity, capital recovery capabilities, earnings power and ability to village bank loans; Second, giving an analysis on the four indicators of sustainable development, according to the development of village banks reality, compare the various indicators for village banks'sustainable development:①To increase savings mobilization capacity is less important than to improve the recovery of loans to the secondary slightly.②To increase savings mobilization capacity is less important than to improve the profitability of a secondary,③To enhance savings mobilization capacity is less important than increase lending capacity slightly,④To improve the recovery of loans is less important to improve profitability slightly.⑤To enhance the recovery of loans is more important to increase lending capacity.⑥To improve profitability ratio is much more important to improve the lending capacity; Third, the analysis of three factors (increased policy support, strengthening the workforce, and enhance their product and service innovation) on the four indicators, according to the reality of the situation, comparing the relative importance between three factors and four indicators.Chapter 3 shows us the building selection model of commercial sustainable development of village banks-based on (AHP) level of analysis. There are three aspects: First, a brief introduction of the AHP applications and modeling idea; Second, according to the analysis of Chapter 2, building selection model of commercial sustainable development of village banks. Third, analyzing and calculating model, and arriving at answers to research questions:①Today for the commercial sustainable development of village banks, comparing with the four indicators, to improve the profitability is the most important, the share weight of 0.56, followed by increasing ability to recover loans slightly, the share a weight of 0.26, followed by higher savings mobilization capacity, representing a weight of 0.12, followed by increased lending capacity of the most, accounting for 0.06 weight.②Today for the commercial sustainable development of village banks, increasing policy support, enhancing staff team-building, enhancing product and service innovation in the three comparisons: enhancing products and services innovation is the most important, the share weight is 0.62, increasing policy support is the second, the share weight of 0.22 to enhance staff team-building is the most minor, the share weight is 0.16.Chapter 4 tells us the recommendations to achieve commercial sustainable development of village banks. According to the results of Chapter 3, giving specific policy advice about commercial sustainable development of village banks, First, focus on improving product and service innovation capabilities. Product and service innovation have many forms, but the overriding principle is to be able to meet the market's effective demand, that is, to debt service requirements, which requires village banks in the market for innovation and forward-looking when there must be certain and not merely the blind innovation, regardless of the consequences of innovation; Second, efforts to obtain more policy support,①the Government should strive to cooperate with the government concerned about the local governments in the new countryside construction concerns in order to contribute funding to address these issues so as to obtain local government fiscal discount, as well as a number of preferential taxation policies.②The central bank should strengthen negotiations with the central bank, for a good performance in village banks to grant Bank, and to give further loans to support agriculture, reducing reserve requirements and so on③The silver regulators should strive to strengthen regulatory authorities and silver contacts, according to the operation of village banks, seek to obtain preferential treatment in the deposit-loan ratio.④At the same time, it should demonstrate a positive into the joint (CUP) and desire to strive for membership in CUP preferential policies in order to expand its credit card business, etc.; Third, improving the building of strong workforce. Proceed mainly from the following four aspects,①Employing senior management personnel, because village banks is in the initial stage, its management and operation may face many challenges, one of senior management personnel is conducive to the rapid internal organization of village banks to establish internal mechanisms for the rapid improvement of and a strong market forward, allowing the team to lead their rapid market development.②To strengthen the training of its staff, improving staff efficiency, and efficient service that can effectively improve the image of village banks to attract more customers.③Establishing a perfect incentive reward and punishment, we should reward good employees for a good service attitude, office efficiency, performanOce,and vice versa punishment, so as to fully tap the potential employee the ability to improve the efficiency of village bank's personnel.④Improving village banks of the regulatory mechanism to enhance staff education, and foster corporate responsibility of employees to avoid people in power, avioding the situation which occurred in power generation and other non-performing loans.Finally, with the village bank's strong investment in innovation, relatively speaking the neglect in terms of policy support, employee team building, affecting towns and villages from commercial banks to determine the sustainable development matrix corresponding changes will occur, it will also occur based on matrix calculated to determine the various the weight factors corresponding changes, three major factors may be equally important, the most important is policy support as well as staff team-building, etc., which requires constant attention to their own village banks to changes in the state of development, different periods give different judgments matrix to calculate the impact of the corresponding weight in order to timely adjust its development strategy.