Research On The Development Strategy Of JY Rural Commercial Bank

Rural Commercial Bank(RCB) is the local shareholding financing institution authorized by China Banking Regulatory Commission. It was restructured from the Rural Credit Cooperative. Under the environment of increasingly fierce market competition, RCB has played an important role in the developing of local agriculture and middle and small-sized enterprises based on its accurate market positioning, flexible business pattern, advantage of popularity and localization. RCB makes great contribution to the development of the rural economy and has become an irreplaceable part of financing market.In recent years, JY Rural Commercial Bank, as one of the “28 Standard Banks of National Rural Financial Institution” has been exposed to great challenges due to internal and external environment. Firstly, Uncertainty which influences the domestic economic development has been increasing and rapid economic growth is gone. Load quality deteriorated constantly and load orientation encountered its choke point because of the great economic situation. Secondly, the process of interest rate liberalization has accelerated which narrows the interest margin and reduces the profitability. At the same time, liquidity risk and interest rate risk face great challenges. Economic structural adjustment makes it inevitable for banks to adjust their strategies. Thirdly, the competition of local banks becomes fiercer and fiercer and internet financial products, as a new force rise suddenly. All these have become great challenges for the development of JY Rural Commercial Bank. The next few years will become the critical period for JY Rural Commercial Bank.This thesis drew a conclusion of the external chances and challenges as well as internal advantages and weakness of JY Commercial Bank from the internal and external environmental analysis of it. Based on this reality and its own condition, this thesis made a comparative analysis of the three strategies proposed by Porter and chose the differentiation competitive strategy which is to the benefit of the stable and long term development of the enterprise. This thesis also formulated the strategy from the providing of differentiated service, highlighting of characteristic management, realization of intermediate diversification and carrying forwarding of cross-regional development. At the same time, the strategic supporting system was built to ensure the implementation of the strategy. The ultimate goal is to turn JY commercial bank into a local based,balanced cross-regional rural commercial bank which has advanced system, good management, adequate capital, fine asset, safe operation, strict internal control, great benefit and distinct characteristics.JY Rural Commercial Bank is the miniature of rural financial institution in China. Analysis and research of its developmental strategy will contribute to the sustainable and sound development of JY rural commercial bank. At the same time, it can also provide reference and example for the building of strategic development and planning system of other rural commercial banks according to their own circumstances.