Strategy Development Contractor Bank Village Banks

Our country must carry forward the inclusive financial construction, financial innovation and revitalize the rural financial market through establishing rural banks. Baoshang Bank positively response to the government’s call to strengthen the construction of rural financial system, and seize the opportunity, conform to the trend of the Times in participating in support of rural financial market development. By this background of the financial market, the paper focus on the analysis of feasibility and necessity of establishing rural banks for Baoshang Bank through analyzing the basic state of domestic rural financial market and the overall situation of Baoshang Bank, in order to put forward the strategic choice in developing rural Banks for Baoshang Bank in the future.As a new financial institution, rural banks play an important role in the development of Baoshang bank in fierce competition of the market and to develop rural banks is a strong pillar for Baoshang Bank. As a joint-stock commercial bank with small asset scale, to develop rural banks, Baoshang Bank can expand it’s market into countryside which cannot only provide a broad space for its business, but also can relief the pressure of shortage of branches. The relationship between supply and demand of rural financial is seriously unbalanced, which requires the rural financial institutions in promoting product and service innovation, in order to meet multi-level demand of the countryside clients. With the time of all kinds of rural financial institutions is rising, the rural bank is becoming a very active effectives. Baoshang Bank has natural advantages to establish rural banks. On one hand, its micro-small enterprise loan technology can combine the "three-rural" service model of rural bank effectively and on the other hand, Baoshang Bank has done many positive and productive explorations in the development of rural bank in recent years, as well as accumulated rich of experiences.This paper concludes that Baoshang Bank has a far-sight strategic choice to set up rural bank by research on inside and outside environment. To set up rural banks, Baoshang Bank not only needs to seek policy support, but also needs to based on its own real situation to formulate suitable manage structure and business operating model,which provide overall support for rural bank development.