A Study On The Influencing Factors Of Profitability Of Rural Commercial Banks In China

With the development of China's economy,the gap between urban and rural areas has become increasingly large.In order to solve the gap between urban and rural areas,China should increase the development of rural economy and support rural infrastructure construction.In economically developed areas,funding for agricultural development is not enough,and the proportion of agricultural income is decreasing year by year.As the main financial services institutions in rural areas,rural credit cooperatives have their own shortcomings,the system and facilities can not keep up with the pace of economic development.Therefore,the rural credit cooperatives urgently need reform,it is imperative.In order to maintain the original advantages of rural credit cooperatives and expand the market share,the state has adopted a series of measures to reform the rural credit cooperatives,which rise with the rural commercial banks.In 2001,China set up three rural commercial banks,and has 859 by 2015.After nearly ten years of deepening reform,the market share and scale of rural commercial banks have been increasing and expanding,and it has become more and more important in the rural financial system.The reform process of rural commercial banks has developed rapidly,and a large number of rural commercial banks have been established one after another.After the reform,the rural commercial banks not only constantly innovate in the business,but also continue to improve their own system.but because of historical reasons,there are still institutional and operational deficiencies.As an important financial component of the rural financial system,China's rural commercial banks are faced with opportunities and challenges.In the local rural economic and financial markets,rural commercial banks have a geographical advantage.Through the development and mining of rural markets,rural commercial banks not only broaden their business,but also can stimulate the potential needs of customers to innovate financial products and to provide customers with more comprehensive financial services.However,with the deepening of the degree of economic marketization,the pressure of inter-bank competition is growing.Due to the marketization of interest rates and the high demand of external financial regulators,rural commercial banks are facing greater pressure.Compared with other large-scale joint-stock commercial banks,rural commercial banks are still at a disadvantage in asset size,operation and management,profitability and so on.In the external fierce competition in the big economic environment,now China's major joint-stockcommercial banks continue to carry out innovation and reform to increase profits and improve profitability.Under such circumstances,China's rural commercial banks should take what way to seize the opportunity to make their own profitability improved.The most important thing to enhance the profitability of the bank is to enhance the profitability.Therefore,it is of great practical significance to study the profitability of China's rural commercial banks.According to the actual situation of China's rural commercial banks and the analysis of the factors influencing the profitability of commercial banks from scholars,this paper makes an in-depth study on the influencing factors of the profitability of China's rural commercial banks from the following aspects.Firstly,this paper first analyzes the development of rural commercial banks and the current situation.Secondly,it summarizes the profitability of commercial banks,and analyzes the factors that affect the profitability of rural commercial banks.Thirdly,according to the conclusion of theoretical analysis,we select the appropriate factor index,construct the regression model,and use the method of multiple linear regression to analyze the factors that affect the profitability of rural commercial banks.Fourthly,according to the results of empirical analysis,this paper summarizes the factors that affect the improvement of the profitability of rural commercial banks and puts forward some effective policy suggestions.