The Competitiveness Analysis And Improvement Strategies Of Rural Financial Institutions

With the process of China's financial markets continue to advance, the competition between financial institutions intensified. The level of competiveness has become the key of one financial institution to sustain and healthy development in financial market. The State Council launched a new round reform of China's Rural Credit Cooperatives (CRCCs)from 2003,which is the most important supplier side of the china's rural financial system. There are two important issues such as how to evaluate china's credit cooperative reform scientifically and objectively, and how to explored the strategic direction of the next step reform of CRCCS. Based on this, this paper trys to use competitive theory, and through building competitiveness evaluation index system to measure the level of competition in China's rural credit cooperatives, and proposed some policy measures to increase the competitiveness of CRCCSThe main contents of this article are five chapters, each chapter of the main content and the logical relationship between chapters is:Chapter I is Introduction section, which introduces the background of this research, the study's definition, the selection of research methods and the basic ideas and framework; The second chapter is literature review, major review of the paper of the theory of competitiveness and domestic scholars'research on the competitiveness of rural financial institutions, also we point out the inadequate of existing research; The third chapter is the review of China's rural credit cooperatives development and reform process. This chapter is mainly based on the vision of a historical perspective. It is very important to clarify the history of Chinese rural credit cooperatives'development, and which is the foundation to establish evaluation index system. In Chapter four turned to theoretical perspectives, and we build the evaluation index system to evaluate the competitiveness of China's rural financial institutions, also we take the Linqing Rural Credit Cooperatives to do case study, and we proposed the main problems lastly; Chapter five is policy recommendations of improve the competitiveness of China's rural credit cooperatives. Through the analysis of quantitative indicators, this study found that rural credit cooperatives in China's financial markets still have a strong competitive power, especially in the vast rural areas, rural credit cooperatives in the market share of almost a monopoly; in a regional financial market, rural credit cooperatives are extremely important participants. However, rural credit cooperatives, though they have a large scale, but their competitiveness levels are relatively low, which highlights the instability of its profit, the low ability of anti-risk, the ability to create value for shareholders is inadequate, and so on. After further analysis, there are some factors such as the lack of highly qualified financial professionals, backward technology, unscientific management decisions, inadequate internal governance, financial product innovation is low is holding back China's rural credit cooperatives to improve the competitiveness.This paper proposed policy recommendations to improve the competitiveness of China's rural credit cooperatives from the macro and micro dimensions. For the macro level, there are①Improve the management system and mechanism;②Improve the overall quality of staff③To strengthen the risk management of construction;④Accelerate science and Technology Building;⑤Build the enterprise competitive advantage;⑥To create a good corporate culture.