Research On The Sustainable Growth Of Rural Banks In Underdeveloped Areas

Finance supporting through the new socialist countryside construction needs the sustainability of an open,regular and competitive diversified rural financial system.In order to solving the problem such as low financial institution coverage,scarce finance supply and inadequate competition,our country started new pattern financial institution experimental units at the end of 2006,so the village bank becomes an important components of the new pattern financial institutions.The sustainable growth of enterprises is not an increase in outer equity capital,operational efficiency and financial policies remain unchanged under the conditions of the sale of the company to achieve growth.As a newborn thing,the village bank of China especially the one located in the underdeveloped regions,its pace of development whether in line with its sustainable growth rate has an important role in analysis the development and sustainability of village bank.The paper sample of our country’s village bank which located in the underdeveloped regions,by collecting data,questionnaire,empirical testing,case studies and other methods,we use the classical model of Higgins sustainable growth to empirical the sustainable growth rate,at the same time,we also use the multiple linear regression model to find the main factors.Then,as the bank of Dalate banner’s data for example,we make a case to verify our findings.Finally,by summarizing the research findings and the actual situation,we proposed improving the level of profitability to establish a good image,establishing the credit guarantee mechanism to enhance the ability to recover loans and so on.