A Profitability Study On Rural Commercial Banks And Rural Cooperative Banks In China

With the continuous development of economy in our country, urban and rural economic gap is bigger and bigger. Farmers’income increase, rural economic development is our major issue. Rural Credit Union is the biggest financial institution in the country. In recent years, the institution is seeking a new way of development through reform. The new institutions are two forms:rural commercial banks and rural cooperative banks.In this paper, the structure has the following six parts. The first part is introduction. The second part is an overview of the two new kinds of banks. The third part is analysis from several aspects about current status of rural commercial banks, as well as rural cooperative banks. The fourth part analyze the relationship between the five factors and the profitability of rural commercial banks and rural cooperative banks. The fifth part analyzes some problems of rural commercial banks and rural cooperative banks at present. The sixth part put forward Suggestions.This article innovation lies:First, there are data samples for analysis. Rural commercial banks’and rural cooperative banks’data are hard to search. Second, among previous literature, the research of profitability of the rural commercial banks and rural cooperative banks are less.Of course, there are some inadequacies:First, the data are incomplete. Second, lack of knowledge of theoretical and empirical basis and research capabilities, the factors analysis is less rigorous. Other analysis is also not deep enough, needing further study and improves.