Study On Cross-regional Operation Of Rural Commercial Banks

In recent years,with the continuous improvement of China’s economic openness,China’s financial services industry has been rapid developmented,because of its huge market potential,rural finance has become the direction of business expansion of banks,as the backbone of active rural financial markets,Rural commercial bank have solid foundation and rich business experience,when rual commercial bank in the service of regional economy,they also began to seek regional expansion.Due to the pre-limited policy supervision,the rural commercial banks began to explore and practice the trans-regional operation in recent years.This paper focuses on the selection of the mode of cross-regional operation of rural commercial bank and the influencing factors and performance evaluation of cross-regional operations.Based on the research results of cross-regional operation of commercial banks both at home and abroad,this paper firstly analyzes the internal demand and external incentive of cross-regional operation of rural commercial banks,and then summarizes the conditions of cross-regional operation of the three main models of rural commercial bank,and then summarizes the current situation of cross-regional operation of rural commercial banks at this stage,and obtains the conclusion that the rural commercial bank are not confined to a certain fixed model,but choose the most advantageous cross-regional business model according to their own needs for cross-regional development and business development.And secondly,it reviews the theory of cross-regional management,based on the theory of economies of scale,the theory of risk dispersion and the theory of strategic management,from the theoretical level,the theory of risk management,and the theory of risk management,This paper analyzes the internal demand and external incentive of Guangzhou agricultural firms ’cross-regional operation,and analyzes the current internal and external environment of Guangzhou Rural Commercial Bank by SWOT analysis,and explores the strategic direction of Guangzhouagricultural firms’ cross-regional operation.Based on the model selection and operating performance of cross-regional operation,the paper analyzes the development model of Guangzhou-rural commercial banks’ cross-regional operation-the establishment of the banks of the Pearl River Department.The results show that the establishment of the village bank is based on the actual situation of Guangzhou Rural Commercial Bank,to help its rapid implementation of cross-regional business model,which brought significant scale and profit growth,but because of cross-regional operations off-site institutions away from the head office distance,increased the difficulty of internal control and management,making the Guangzhou Agricultural Bank Business risk increased,so that the past two years,Guangzhou Agricultural Bank to stop the expansion of the village banks,in turn to enhance their own risk management capabilities,and strengthen the management level,so that the development of villages and towns to a formal.Based on the above research results,this paper puts forward some suggestions on the cross-regional operation of rural commercial banks: First,rural commercial bank should adhere to the implementation of cross-regional business strategy;Second,rural commercial bank need to choose the appropriate cross-regional business model;Third,Need to improve their own risk management capabilities;Fourth,strengthen their own management level,should not blindly expand.