Study On The Sustainable Development Of Rural Banks In Minority Areas Of China

Modern rural economy based mainly on rural financial, due to the weakness of our agricultural foundation and the shortage of funds, the level of economic and social development in rural areas is far away from which in cities and the income gap between urban and rural residents also increases. The establishment of village banks not only expand the funding source of the rural economy in a certain extent and increase the supply of rural finance, but also enrich the rural financial services and meet the financial needs of rural areas, rural financial system also will continue to improve for rural Financial markets. You can say that the lives of farmers, production activities, continued development and improvement of rural banks are inseparable, and even the harmony and stability of the whole country, the stability and unity of the whole nation and social development are closely linked with the development of village banks. Therefore, the entire country mainly focuses on whether the village banks can have a sustainable development.More extensive of the relevant literature have been reviewed and found that the amount of literature study domestic and overseas on the sustainable development of rural banks and small loan companies is quite big, the study is also abundant and specific. The study domestic about the sustainable development of rural banks is still relatively few. This paper studies the minority areas, explores the sustainable development and finds the problems of rural banks, analyzes the typical case of national regional rural banks development, and summarizes experiences and comes up with effective countermeasures.China's national regional rural banks have their own characteristics, mainly in the low establishment of the threshold, clear and diverse ownership structure, flexible management structure, and clear positioning. The sustainability of the market, management capacity, financial systems and human resources are important measures for sustainable development of rural banks in ethnic regional.The data collated and summarized from financial information system of the China Banking Regulatory Commission shows that there is a rising trend in both number of rural banks and the total amount of its assets and the amount of deposits and loans from 2007 to the end of 2014, the loan amount of farmers and small businesses and has been significantly improved, which suggests the overall development is in good condition. The development of the Rural Bank as a whole is more optimistic and has achieved some success, mainly in: the establishment number increases every year, the number of rural banks occupied most part, for which the registered capital is about 10 million yuan to 30 million yuan, some rural banks has begun to develop scale and occupies a pivotal position in the field of rural finance, agriculture-related loans increased year by year, which provide a strong credit support for the farmers and herdsmen. It has a positive effect that the sustainable development of rural banks in minority areas which can regulate the absorption of private capital and broaden access to financial services in rural areas and improve rural financial environment. However, in the course of its development, there are some problems, mainly in: deviation from market positioning, business underdevelopment, system imperfect and professional talent shortage. However, the cause of these problems is objective, such as, there is a big risk of customer groups, the lack of social credibility and social acceptance, government's policies and regulatory force.In the study, the paper selected two well developed areas, namely long Xingcun Western banks and rural banks Nei Menggu Ke Shenketengnong, and analyzed the basic situation, operating conditions and operational characteristics which showed there is common in both these two places. Both rural banks are in minority areas where the local economic development level is relatively backward, but have achieved good operating results. We can conclude the following characteristics based on the successful experience of these two banks: First, maintain the service Market positioning; second, innovate business model; third, create a mechanism to guarantee the integrity of diverse; fourth, constantly strengthen the quality of staff training. From the development of two successful cases, we also got a conclusion that in order to achieve sustainable development of rural banks we have to be fully integrated local conditions and be capable of innovation.Combined with China's national conditions and case analysis of the development of regional rural banks, this article not only offers a proposal from the establishment of the government support system, improvement of the rural credit environment, strength of supervision and perfection of system construction, strengthen financial product and service innovation, but also puts forward countermeasures from definition of market positioning, strength financial products and service innovation, improvement of internal management and prevention operational risks and enhancement human resources management, which achieve a sustainable development of rural banks through a combination of internal and external methods in minority areas.