Factor Analysis About The Credit Performance Of X Rural Bank

Rural bank, as a basic solution to the slow development of China’s ruralfinancial system, financial insufficient supply and inadequate competition, it not onlyassumed the important task of developing rural business to achieve profitable growth,but also commit the financial responsibilities to support agricultural development.Only if rural banks have operating profit, can these goals come true. In this paper, bydoing statistical and econometric analysis to the representative X rural bank creditreturn visit record, we analyze the practical problems exposed in current developmentprocess of China’s rural banks deeply, which is the problem of credit business lowefficiency. Based on the analysis findings, basic thesis is given on the developmentand construction of rural bank, and proposed a rationalized framework for theconstruction of rural bank which is adapted to China’s development reality.Through observation and research, we found that the current product range ofthe X village banks operating three major categories, the first deposit products; loanproducts; the third type is a bank card products; X village banks the basic operationalstatus of its main source of profit is still dependent on traditional credit business;current profit model of the X village bank lending Xichu. Because of its savingsproducts is relatively simple, basic, traditional demand and time deposits, so it doesnot exist a clear advantage compared to other agriculture-related financial institutions,higher innovative credit products but provides the basis for the effective operation ofthe X village banks; X village banks existing loan products, the new rural loanproducts Industrial treasure spot through agricultural enterprises benefits, cityagriculture, car benefit and other representatives of a greater success, on the one hand,due to its adaptation loans to farmers needs, the other hand, its in the overall productdesign, give full consideration to the basic status of farmers asset and mortgageproducts; responsibility system for head office sub-branches and departments responsibility is one of the characteristics of the X village bank management. Thehead office is responsible for the overall business of the branch and credit planning,the branch is set up to credit the Ministry of Planning and Management Division,Ministry of Finance and approval of the Ministry, various departments and commonservices in the credit business. X village banks in the operating system and businessoperations, does have a higher efficiency, but the current and future rural financialmarket conditions for their development requirements, including the internal creditapproval mechanism, staffing and management model. The results showed that, basedon statistical and econometric analysis of the credit return visit record X village banks,at least in two aspects of risk control and sales line of credit to certain deficiencies.For the current development status of China’s rural financial institutions, theX-village banks with poor credit performance reflects the basic characteristics thatconfirms the type of financial institutions facing opportunities and challenges:opportunities stem from the need to focus on rural financial services serious gap andrural credit; challenge from the village banks are weak, and there are deficiencies inmanagement and performance, external competition and less policy support, ruralfinancial institutions in the situation alone. Opportunities, rural financial institutionsmust be able to fully enrich their own strength, so the opportunity will not be lost,while safeguarding the stability of operations; challenges also requires rural financialinstitutions to have reasonable internal optimization, rational allocation of resourcesto achieve the most effective operations. But more importantly, access to externalsupport and encouragement necessary external supervision and management in anorderly manner to achieve rapid growth, take on the important task of improvingChina’s rural financial market situation. Overall, the rural financial institutions fromthe two basic ways to start, the first endogenous structural adjustment, the second isto improve the conditions of external support. The former one is mainly for ruralfinancial institutions in their own development strength of the weak start to improveand adjust the path, its requirements village banks as the representative of ruralfinancial institutions in the internal credit risk system, the personnel structure,investment and financing channels, business and management structure to make auseful exploration to win in the basic status of the rural financial market, to ensure appropriate rural financial services functions. Local governments should give fullconsideration to local rural financial development on the basis of property rights tosupport and actively guide the flow of rural financial markets, cash flow, making therural financial institutions to lower the cost of doing business. Addition, preferentialpolicies and tax incentives to help start-up of rural financial institutions willeffectively achieve profitable revenue-generating savings to the future developmentof capital; financial supervision and publicity to some extent, facilitate the variousgovernment functions, effectively promote the government support the developmentof rural financial institutions process and efficiency. Countries should be consideredfrom the perspective of the overall situation of the basic situation of China’s financialsystem, risk monitoring system, the credit system and the laws and regulations systemto protect the stability of the rural financial institutions, improve the performance ofrural financial institutions, credit, maintain a sustained growth trend.