A Study On The Influencing Factors Of The Development Of Chinese Country Banks

With the rapid development of our country’s economy, the emerging problem of"agriculture, rural areas and farmers", has become an important factor of the nationaleconomy, nice and fast development, in the long term sense, the solution "three agriculture"problem has become very important. Village bank is the product of China’s rural financialsystem reform and innovation, plays an important role in promoting the construction of newcountryside and has become a vital force to support the development of the "three rural" local,the development of village Banks, management model, influence factors, countermeasuresand Suggestions have also been drawn attention of the academia and industry.The article did an empirical research on the factors affecting the performance of China’srural bank through the multiple regression model. Therefore, the paper first introduced thestatus of the analysis on the development of the village bank,then described thedevelopment and the current problems existed in the development process; after that theauthor analyzed four kinds of development patterns which is management headquarters,general branch system, holding company and subsidiary bank of our country village bank, andon this based come out some improvement ideas and incentive mechanism on the currentChina’s rural banks in the above four kinds of mode of development problems; then take our799village bank as the research object, to establish the multiple regression model from theprofit ability and risk management two indicators using cross-sectional data, do the empiricalanalysis of the main factors affecting the performance of China’s rural banks; finally, comeout some countermeasure and suggestion for the development of China’s rural bank throughthe multiple regression model.Through the study of this article,,We can effectively improve the current situation ofvillage Banks and promote the rapid development of village Banks in our country.in ourcountry from the following three aspects:the clear village Banks market orientation,strengthening the rural banking business innovation and improve the system of village andtown bank internal control.