A Research On Competitiveness Of Rural Cooperative Banks In Jiangsu Sihong In The Context Of Financial Reform

On 8th May,2005, Approved by the China Banking Regulatory Commission, Jiangsu Province, the first rural cooperative Bank-Jiangsu Sihong rural cooperative banks officially opened, The bank was transformed basing on the original Sihong County Credit Union, belonging to local financial institutions in the stock cooperative system. This also marks the form of ownership of rural credit cooperatives, Jiangsu Province, has opened a new chapter in the diversification of the reform. However, with the rural financial reform, financial market access policy is gradually relaxing, especially in rural financial markets, in recent years an increasing number of domestic and foreign financial institutions have being rushing into the rural market. New emerging rural financial institutions, such as rural banks, Mutual funds, etc are growing step by step, development of small loan companies is playing an increasingly important role in supporting agriculture. In the context of deepening the reform of rural finance, rural finance as the main force in Sihong, in the fierce market competition, how could rural financing cooperative banks be invincible, how to better services for local economic development, how to further enhance its Competitiveness and other issues are of great concern. This paper takes Jiangsu Sihong rural cooperative banks for example, mainly researching elements of the competitive situation, conducting analysis of the competitiveness of Sihong rural cooperative banks basing on analytic hierarchy process (AHP), and giving rise to Sihong County cooperative banks.The paper is divided into six chapters, which mainly includes three aspects:(1)Elements of Competitiveness in Rural cooperative banks SihongBy analyzing status of rural cooperative banks and competitive elements of Sihong, this part mainly helps understand the Sihong the profile of rural cooperative banks, analyzing separately the two aspects of competitiveness in implicit elements of and the reality. Thus finding out that in recent years, rural cooperative banks Sihong in all respects made some achievements, but affected by the fluctuations, progress of the process has been slowing down since 2008, so there is still room for further development.(2) Empirical analysis for the competitive power of Rural Cooperative Banks in Sihong County. We use the AHP method for empirical analysis for the competitive power of Rural Cooperative Banks in Sihong County. The conclusion points out that, first of all, in the aspect of the longitudinal changes of time, the competitive power of Rural Cooperative Banks in Sihong County has larger fluctuation as time changes. In contrast, the potential competitiveness is less affected by economic environmental. The potential competitiveness of this cooperative bank has been in a relatively steady state. Secondly, judging from the main factors, the safety factor, liquidity factors and profitability factors in the current competitive powers are the main influencing factors. In the potential competitiveness, the factor of department set and the factor of talent distribution are main influencing factors.(3) The countermeasure to improve Rural Cooperative Banks in Sihong County.Combined with earlier research conclusion, we put forward the strategy to enhance their competitiveness. First of all, we must continue to deepen reform and define market. Next, we have to improve the quality of employees and strengthen the construction of human resources. Then, we should speed up the pace of innovation and enhance the service level and ability. Finally, we have to perfect the risk management and strengthen the ability to control risk.