Evaluation Of Sustainability Of Rural Banks In Jining City, Shandong Province

Jining city of Shandong province is an agricultural city,and the establishment and development of rural banks is the key point of the rural financial reform in Jining city.In January 2012,the first rural bank was established in Jining.It has provided a strong financial support,stimulated the development of the economic level,and laid a good foundation for the development of the bank in Jining district.After 4 years,as of December 31,2016,the numbers of rural banks in Jining areas have expanded to 13,rural banks have covered the whole city and become an indispensable part of financial market.But as a new financial institution,the establishment of the rural bank is really short.In the face of complex survival environment,the bank will appear a series of problems in the process of establishment and development,seriously restricting the sustainable development ability,so the sustainable development of rural banks became the focus of attention.Based on economic data,this paper analyzes current situation and problems of rural banks in Jining city.To build a comprehensive evaluation system for the sustainable development of rural Banks,17 indexes were selected from five evaluation dimensions:scale strength,growth ability,profitability,risk control ability and innovation ability dimension.Then classify and extract index factor through factor analysis.Study the influence of different factors on the sustainable development ability of rural banks and rank the sustainable development ability of each rural bank.The results show that,the indexes of the sustainable development ability of rural banks are extracted into three factors through factor analysis,they are named scale development factor,benefit factor and risk factor.Among them,the scale development factor has the greatest influence on the sustainable development ability of the rural banks,the benefit factor is the second,and the risk factor is the smallest,if the scale development factor ranks high,then sustainable development ability ranks high.So,put forward corresponding policy suggestions that can promote the sustainable development of rural banks,hope this will benefit the practice.