Research On The Development Strategy Of Rural Bank In Henan Province

In January 2007,China Banking Regulatory Commission(CBRC)established the main sponsor system for rural bank.Since the establishment of the first rural bank in June 2008,the rural banks in Henan Province have played an important role in activating the rural financial market and developing inclusive finance.By the end of 2018,80 rural banks and 460 branches had been set up,covering 90 cities(and towns)in Henan Province.With the total assets amounting to 114.5 billion yuan,Henan became the first province whose total assets exceed 100 billion yuan in China.However,the rural banks are also facing some problems during their development: the main sponsor bank do not perform their duties with due diligence;suitable administration mode and operation mechanism are lack etc.These problems seriously restrict the development of rural banks in Henan Province.On the basis of detailed literature review,this paper systematically studies the development strategies of rural banks in Henan Province.Firstly,after careful study of regulatory policies,this paper designs a questionnaire to address the problems faced by Henan rural banks under the main sponsor system.According to the questionnaire survey of 80 rural banks,this paper reveals the main problems of Henan rural banks facing.Secondly,by summarizing the experience of Grameen Bank and Portchester Country Bank,this paper discusses the reference value of intensive management mode,specialized department management mode,cooperative management of headquarters and branches,and joint management mode for the development of rural banks in Henan Province.On this basis,some suggestions are put forward to improve the current system of rural banks.Finally,this paper put up with several strategy recommendations to the development of rural banks in Henan Province : the advice of how to active main sponsor strictly perform the responsibilities of major shareholders;the strategies of how to optimize the consolidated table management system etc.This study not only provides a set of strategy advice for the development of rural banks in Henan Province,but also provides a reference for the development of rural banks in China.