Research Of The Rural Bank’s Market Positioning And Its Influencing Factors

Since the inception of the rural bank, its market positioning had been a very much concern of academia and industry, became the focus of discussion and even controversy. Many people think that rural bank can not unify its own benefits and the social benefits, and the natural profit-driven of the rural bank will cause it to deviate from its original setting intention. Today, the rural bank has been developed for more than five years, it is necessary for us to review and consider its market positioning combining with its actual development situation and operating data.This paper summarizes and analyzes of the existing research literatures of the rural bank, bases on the theory of market positioning, and combined with the C-A-P model describdes the reasonable market positioning of the rural bank should regard farmers, individual industrial and commercial households, micro and small enterprise as the service objects,offering small-amount and agricultural supporting loans to contribute the development of the local economic. This paper also using the SWOT analysis method in the management to anlyse and discuss its market positioning of "agricultural credit and small-amount loan" from its internal strengths and weaknesses, external opportunities and challenges.After the theoretical analysis, based on the actual operating data, this paper lillustrates that the existing rural banks are in full compliance with the original setting purpose which means that they implement the market positioning of "agricultural credit and small-amount loan" well. This paper takes Zhejiang province rural banks’business data as samples, analyzes their profitability, safety and liquidity under the market positioning of "agricultural credit and small-amount loan". The conclusion is that under the current operation mode, the safty and liquidity of the rural banks can be ensured, and the market positioning of "agricultural credit and small-amount loan" can benefits their profitability, this powerfully demonstrates that the rural bank can achieve good profits when supporting of economic and financial development of the rural areasIn order to analyze the influence factors of the rural bank’s market positioning, this paper makes a distinction between "small-amount loan" and "agricultural credit", using average loan("small-amount loan") and the rate of agriculture-related loans("agricultural credit") as the dependent variables, using stepwise regression econometric method to analyze the possible influence factors to the variables. The empirical results show that the "small-amount loan" can be well explained by its own internal factors and the local external economic and financial factors, but the "agricultural credit" cannot be explained by only these factors, which means it needs a greater range analysis.At the end of this paper, the author combines his own feeling and experience gets from many times’investigations with the theoretical analysis and empirical research,putting forward some proposals to promote the rural banks to develop healthy and quickly under the market positioning of "agricultural credit and small-amount loan". The proposals are offered in two angles, they are "to create favorable external business environment for the rural bank to implement the market positioning" and "to construct advantageous internal guaranteed mechanism for the rural bank to carry out the market positioning".