Research On Problems And Countermeasures Of Product Development Of Z Community Banks

China's rural financial market has great potential while the overall financial system is out of date with low market efficiency and a contradiction between capital investment and credit system. In December 2006, China Banking Regulatory Commission issued policies to reduce the access threshold of banking financial institutions in rural areas,encouraging all kinds of capital investment to enter and set up new community banks.As of 2016, the total number of community banks in China reached 1443, of which only 110 are founded by foreign banks. With over 10 years' experience in China's rural financial market, foreign community banks have seen an obvious failure in their business model. In February 2011, the first community bank set up by Z foreign bank started operation. So far, they have initiated the establishment of 82 community banks,accounting for 75% of the total number of foreign community banks. As a representative of the overall situation of foreign community banks, the performance of Z foreign community bank has been far from their initial expectations. Therefore, this paper takes credit products as the breakthrough point to study the problems in the credit products of Z foreign community banks and puts forward corresponding countermeasures.This paper mainly includes the following contents: The beginning chapters are the literature review and theoretical basis, combing domestic and foreign academic circles on foreign community banks, rural financial products related literature. Then the paper describes the reasons for the establishment of Z foreign banks and the development status of in Z foreign community banks. Particularly, the paper analyzes the problems of Z foreign community banks and analyzes the reasons for these problems. In the end,the paper provides countermeasures and suggestions for the credit product construction of Z foreign community banks using social capital and market segmentation theories.There are three points to explain the significance of this paper: firstly, this paper aims to promote Z foreign community banks to expand credit business in order to achieve ideal profit; secondly,this paper tries to provide basic reference for community banks to solve some common problems of credit products; finally, this paper hopes to make contribution to promote rural economic development.