Research On Sustainable Development Capacity Of Rural Banks

In recent years,rural banks play a more and more important role in promoting the development and also improving the quality of rural financial services,activating the rural financial resources and finally promoting the economic and social development in rural areas.As a new rural financial institution in China,the emergence and rapid development of rural banks have broken the original market pattern of rural financial market in china.After more than 10 years of development,rural banks have become a new force in the development of rural financial markets and play an indispensable role in the rural financial market.However,the village banks are still in their initial stage of development in China,and there are also a series of problems in market position,development scale,quality,risk control ability and so on.These problems also restrict the sustainable development of rural banks in the future,and become the focus of attention in the theoretical and practical fields.This article mainly aims at the actual situation of the development of rural banks in Henan Province.Combining the realistic background and significance of the establishment of rural banks,and then puts forward the object of this study.Next,through the domestic and foreign related research results combing,as well as the content of this study,research methods and innovation and shortcomings are discussed.The following is a review of the concepts and theories related to our subject,which lays a solid theoretical foundation for the empirical analysis.Then,we analyzes the development process,current situation and existing problems of rural banks in Henan province.Based on this analyzes,this paper uses the data of 30 villages and towns Bank of Henan province at the end of 2016 as a sample data,and empirically analyzes the main factors that influence the sustainable development ability of rural banks in Henan province.In the process of analysis,this paper follows the comprehensiveness,importance,quantification,availability and comparability,from 6 dimensions which contains loan size,asset quality,potential risk,liquidity risk,profitability and capital adequacy,include 13 indicators,using modern scientific method,factor analysis at the same time,realize the comprehensive evaluation of sustainable development ability of the rural banks in Henan Province,the four main factors that affect the sustainable development of rural banks,from big to small is scale factor,profitability factor,liquidity factors and risk control factors,its influence on the rural banks are more than 41.2%,weight 24.9%,21.2% and 12.7%.Based on the empirical analysis,this paper draws the corresponding conclusions of the study,and also about the future sustainable development of rural banks in Henan province to enhance the ability of the proposed path to explore.The following four aspects including the scale development of exploration,profitability and liquidity of exploration,risk management research,puting forward policy recommendations for the future sustainable development of village banks ability upgrade.