The Impact Of Ownership Structure On The Performance Of Rural Commercial Banks

Rural commercial banks are important financial institutions to serve the rural financial market and promote the development of the rural economy,making a significant contribution to the rural economic development.Rural commercial banks are formed by the rural credit cooperatives after continuous reform of property rights.The reform process of rural credit cooperatives is complicated.From the rural credit cooperatives established in the early days of the founding of the People's Republic of China to the 90's "decommissioning and the central bank taking over",and then the three forms of property rights in 2003 include the shareholding system,the stock cooperative system and the cooperative system.In 2010,the rural commercial banks will be designated as the final form of the reform of property rights of rural credit cooperatives.The scale of the assets of the rural commercial banks after the reform has been improved,the quality of capital has been strengthened,the scale of operation has been continuously expanded,and the sustainable development capability of rural commercial banks has been improved.However,after the reform of the rural commercial banks because of the short development time,not mature enough,the ownership structure is not reasonable,such as the decentralization of ownership,ownership structure is single,etc.,compared with other similar commercial banks in all respects there are still gaps.And the ownership structure will affect the bank's governance mechanism,thus affecting the bank's business performance.Therefore,based on the ownership structure,this paper chooses the data of 22 mature rural commercial banks in Anhui province from 2013 to 2015,and uses the panel data from 2013 to 2015 to establish the regression from the nature of equity,the concentration of ownership and the equity balance.The nature of the equity is measured by the nature of the largest shareholder,the virtual variable of the state-owned shares,the proportion of state-owned shares and the proportion of private shares.Using the first largest shareholder shareholding,the first ten shareholders,the HHI variable measures the concentration of equity.The balance of equity is measured by the ratio of the first stockholder to the second largest shareholder.Using EVIEWS software to calculate the regression results,through the empirical analysis to study the influence of the ownership structure of rural commercial banks on the performance of rural commercial banks.According to the sample data,it is found that the ownership structure of the rural commercial banks is not concentrated.And the nature of the bank's shareholders is given priority to with private shares,low proportion of state-owned shares,private stock proportion is very high.After the restructuring,rural commercial bank is more inclined to private banks.But the empirical results show that there is a negative correlation between private sector and business performance.This may be related to the introduction of private enterprises lack of financial management experience and motivation in private enterprises.Secondly,it shows that there is a negative correlation between the concentration of ownership of agricultural firms and the performance of rural commercial banks.Finally,the empirical conclusion also shows that the equity balance of rural commercial banks has a positive effect on the performance level of rural commercial banks.Based on this,the article proposed to optimize the ownership structure,improve the control of the controlling shareholder of the ability to introduce strategic investors,the formation of a diversified ownership structure,the bank executives to implement a reasonable incentive and restraint mechanisms to improve the supervision mechanism to optimize the external environment,the relevant departments of the policy support and other countermeasures,hoping to establish a scientific and rational ownership structure in order to promote the sustainable development of rural commercial banks and improve the business performance of rural commercial banks.