Comparative Study On Operating Performance Of County And City Rural Commercial Bank In East Coastal Area Of China

Rural commercial bank is a product of the reform of the rural financial system in China, since the first batch of rural commercial banks founded in2001, rural commercial banks have developed for more than ten years, and have grown into a big part in the financial market of China. Although it is commercial bank, it still shoulders the responsibility to support the agriculture, farmer and rural area. With the continuous development of China’s economy, industrialization and urbanization in the Eastern China become more and more obvious. In Eastern China, city and countryside integration is at a high level, thus traditional agriculture concept has been greatly weakened, and deep processing of agricultural products becomes the main feature of the agricultural development in Eastern China. Therefore, the main clients that rural commercial bank serves are no longer the traditional concept of agriculture, farmer and rural area, but the modern agriculture and small and medium-sized enterprises. Based on geographical difference, rural commercial banks in eastern China can be divided into two types: county rural commercial bank and city rural commercial bank.What are the special characteristics of county rural commercial bank and city rural commercial banks? Will the different characteristics result in different operating performance of county and city rural commercial banks? With the continuous development of the economy and changes in both county and city rural commercial banks’operating background, what can they do to improve their operating performance?With these questions, the writer organizes the paper into seven parts.In the first part, the writer gives a macro introduction to the paper, including the background and significance of the study, structural arrangement and study methods of the paper, and innovative and shortcomings of the study.In the second part, this paper gives a brief overview of the background and current operating state of rural commercial banks in China, and reviewed relative previous studies, which lay a basis for the study.In the third part, this paper makes a clear concept of operating performance, and analyses the different operating characteristics of county and city rural commercial banks in eastern China. According to the different features, the writer speculates that operating performance of county rural commercial banks is better than city rural commercial banks in eastern China at the time being.In the fourth part, the writer uses the Analytic Hierarchy Process and selects12indicators that reflect the operating performance of the rural commercial banks, establishing analytic hierarchy model to value the performance of county and city rural commercial banks.In the fifth part, the writer selects five representative rural commercial banks including3county rural commercial banks and2city commercial banks, and uses the model to value their operating performance. The empirical result shows that the result is in accordance with the previous speculation that county rural commercial banks is better in operating performance than city rural commercial banks. According to the empirical result and specific indicators, the writer analyses every sample banks’operating performance separately.In the sixth part, based on the theoretical and empirical results of this paper, the writer proposes recommendations to promote the improvement of the operating performance of both county and city rural commercial banks.Last part is conclusion part, the writer draws a conclusion to the paper.