Research On The Development Strategy Of H Rural Commercial Bank

As one of the important components of China’s banking industry,rural commercial banks have great influences on providing strong financial support for the development of rural economy and completing the service scope of regional finance.In recent years,China’s economy has shifted from rapid growth to moderate growth and enters into a new phase of restructuring and development.In order to adapt to this change,supply-side structural reforms came into being.The domestic economy gradually transformed from exogenous growth to connotative and intensive growth.The readjustment of economic structure has brought tremendous changes to the external environment of rural commercial banks: the continuous promotion of urbanization process,the continuous growth of middle class,the widespread application of big data,the emergence of smart devices,the establishment and implementation of the Basel III Accord.These changes have new requirements on the adaptability of rural commercial banks.Financial reform led by internet plus and the internet of things which use application innovation as the core force banking institutions to transform and upgrade.At the end of 2017,the Communist Party of China put the rural revitalization on the agenda.At the rural working conference,it clearly defined the important position of rural agricultural development in the strategy.Rural commercial banks will face both opportunities and challenges in the future.The research object of this thesis is H Rural Commercial Bank which was established in 2016 and transformed from H Rural Credit Cooperative.It mainly deals with traditional deposit and loan business.As a major financial force to serve the rural economy and small and micro businesses,H Rural Commercial Bank constantly seeks new opportunities for development in the fierce competition.Although a great deal of energy is invested in business development and framework reconstruction,H Rural Commercial Bank inevitably encounters many difficulties during the period of economic restructuring,such as narrowing banking interest spreads,decreasing profitability and rising non-performing loans.In order to adapt to the new environment and enhance its competitive strength,it is urgent for H Rural Commercial Bank to establish a well-defined,characterized and well-focused development strategy.Based on the strategic theory,this thesis uses strategic analysis tools,such as PEST,Michael Porter five forces model,SWOT,IFE and EFE,to find out the main factors that affect the development strategy formulation.This thesis combines quantitative analysis with qualitative analysis.First of all,this article introduces the background,purpose and methods of the research and summarizes the research status of rural commercial banks at home and abroad in recent years to make a reference for the strategic choice of H Rural Commercial Bank.Secondly,this thesis starts to analyze H Rural Commercial Bank.It is divided into two dimensions: vertical dimension and horizontal dimension.The vertical dimension is based on the historical development of H Rural Commercial Bank and its current situation.The horizontal dimension is the macro environment and industry analysis.Then it sorts out the main influential factors of the development strategy,and makes a quantitative analysis of these factors,and figures out its importance and evaluation scores.Thirdly,according to the results of factor analysis,the four quadrants of alternative strategies are obtained through SWOT analysis.This thesis chooses this strategy based on the development goals and determinants of H Rural Commercial Bank.Finally,this thesis puts forward strategy implementation measures and risk response measures.In order to accomplish the transformation and development of H Rural Commercial Bank,provide effective financial service of economic development and improve profitability,this thesis choose WO(weak and opportunity)strategy.Its market positioning is rural economy and small and micro businesses.Improving the technical level is the main task.H Rural Commercial Bank will develop into a technical specialized rural financial institution.The research will provide the references for the same type of small or medium banks.