Study On Rural Commercial Bank Operating Capacity

Rural commercial bank is a new system which is restructured from the system ofrural credit cooperatives. In management, it takes the role of the rural creditcooperatives’ supporting agriculture and manifests the business characteristics of themodern commercial banks. It has injected new vitality for the rural financial servicesand becomes a new and suitable commercial financial institution, injecting fresh watersupply for rural developments and financial needs. However, with the deepening ofthe financial crisis impact on the monetary system, joint-stock banks and urbancommercial banks absorbs almost all urban and rural capital sources. And the ruralcommercial banks as the main power to support agriculture development have moresupport functions for the rural financial perfection and development. At the same time,it is facing unprecedented pressure in the use of financial support and rural capitalsource required for the scale development. So this article selected Jilin Jiutai RuralCommercial Bank as the research case of a rural financial system the transformingfrom rural credit cooperatives. In the perspective of operating capacity, it aims tomeasure the real benefits of the rural commercial banks through the rural commercialbanks’ supports of bank loans and capital adjustment needed rural financial system, toevaluate operating capability through the financial condition, and to make financialratios factor analysis through financial ratios’ change based on capital liquidity in thehope of exploring the highlights of management on capital limitation and circulationscale met during the deepening reforms of rural commercial banks, and providing thereference to enhance the operating capacity and build modern rural commercial banks.This paper discusses from the following aspects. Firstly, it elaborates the necessityof the study of rural commercial bank operating capacity from the background, purpose and significance of selecting the topic. Secondly, it defines the differencesand relationship between operation and operating, and focuses on the operation abilityof direction. Thirdly, it introduces the main status of Jilin Province’s rural financialorganizations, their operating status and scope of business, and compares Jiutai RuralCommercial Bank and other rural financial institutions by starting with revealing thecurrent situation of the development. Fourthly, it interprets the present situation andproblem in rural commercial banks’ current operating from the angle of deposits,loans, agriculture supports. Fifthly, based on the capacity and characteristics of ruralcommercial bank operating, it evaluates the operating capacity of Jiutai RuralCommercial Bank respectively from profitability, liquidity, security. According tofinancial ratios form by the change of capital liquidity, it makes a financial ratio factoranalysis so as to find out three main influencing factors, i.e. the agricultural capitalstructure, the rural financial innovation and development, and agricultural loan marketpositioning. And based on the three main factors, it aims to improve the ruralcommercial banks’ operating capacity.