The Research On The Market Positioning And Management Strategies Of Rural Bank At City Level (RBCL)

Currently, the financial system in most rural areas, especially in the western China, is not well-developed:The banking network is not adequate; supply of financial resources is insufficient and it also lacks of competitions in the financial markets. Under such circumstances, a new type of financial institutions in rural areas, i.e. rural bank, is promoted by the CBRC in order to further reform and strengthen rural financial service and to boost the realization of Socialist New Countryside.Taking N Rural Bank Co. Ltd as an example, this paper explores the market positioning and management strategies of Rural Bank at City Level (RBCL). The analysis is focused on the SWOT analysis, the regulatory policy and construction of deposit and loan. It then identifies the issues in the operation of rural banks that may have caused the digression with the intentions of CBRC. It finally provides solutions by introducing some successful operations of rural banks.Methodologically, a micro-as well as a macro-level of analysis is conducted. Methods of exemplifying and contrasting are adopted. At a macro level, the paper illustrates the historical significance of constructing RBCL. Using SWOT analysis, it then identifies the strengths, weakness, opportunities and threats of RBCL compared with other banks. At a micro level, the paper conducts a case study, analyzing the market positioning and management strategies of N Rural Bank Co. Ltd and highlighting the problems in its operation. Finally, the paper provides suggestions to the sustainable development of RBCLIt is concluded that, being a new model promoted by the CBRC to explore the active management of rural banks, RBCL have eminent strengths compared with rural bank at county level. In terms of market positioning, RBCL should focus on providing services to "agriculture, countryside and farmers". In terms of management strategies, RBCL should stick to the policy of "micro-loan and decentralized-loan". Meanwhile, RBCL should improve the system of internal promotion and constraints, create new types of services, enhance the efficiency of settlement and build up core competitive powers. In addition, the assistance of government policies and rigorous regulatory policies are also of importance. Only in this way can RBCL have a healthy and sustainable development.The contributions of this paper are that, it combines the analysis of both macro and micro-level, and does the analysis both quantitatively and qualitatively. Based on a case study, it highlights the problems in the operation of RBCL and gives relevant suggestions from the perspective of a regulator.The limitations of this paper lie in that, because of lacking of successful data in the operation of RBCL, more in-depth analysis needs to be conducted. Secondly, because of the limited time that the author has been evolved in the supervision and regulation of rural financial organizations, it is expected that the ability of solving practical problem be enhanced.