Research On The Relationship Between The Dual Goals Of Agricultural Support And Profitability Of Listed Rural Commercial Banks

A new round of reform of rural financial institutions began in 2003,with rural commercial banks gradually becoming the main force serving for three problems about countryside,agriculture and farmers.As an important financial institution in rural areas of China and a major financial resource in rural areas,rural commercial banks play a fundamental role in rural areas and play a huge role in promoting the development of rural areas and agricultural economy in China.Serving agriculture,rural areas and farmers is the policy requirement of the country for rural commercial banks.However,the transaction costs of supporting for three problems about countryside,agriculture and farmers loans are high and the risks are high,and most of the loans related to agriculture require more favorable conditions.This is in conflict with the market subject status of rural commercial banks: "independent operation,self-restraint,selfdevelopment and self-risk".Therefore,rural commercial Banks need to face the dual goal of serving for three problems about countryside,agriculture and farmers and pursuit for profit.First of all,through literature review of the study on the relationship between the dual goals of supporting for three problems about countryside,agriculture and farmers and pursuit for profit of rural commercial banks,this paper understands the current research status and determines the theme of this study,namely the relationship between the dual goal of rural commercial banks.Then it summarizes the related concepts of rural commercial banks,and then discusses their dual goals of supporting for three problems about countryside,agriculture and farmers and pursuit for profit.It is found that there is no consistent qualitative analysis on the relationship between the dual goals of rural commercial banks.Then this paper expounds the theory of rural finance and the theoretical basis of dual goals of rural financial institutions.Secondly,based on the data of 8 listed rural commercial banks in 2012-2017,this paper conducts an empirical study on the conflict relationship between the dual goal of rural commercial banks.On the basis of the performance evaluation method of Yaron,the profitability goal of the sample rural commercial banks was evaluated,and the subsidy dependence index(SDI)was calculated.Secondly,factor analysis method was used to construct the evaluation index of supporting for countryside,agriculture and farmers goals of rural commercial banks.Thirdly,the relationship of dual goal is analyzed through the SDI value of the sample rural commercial banks and the performance score of supporting for countryside,agriculture and farmers.The results of the scatter diagram of dual goal relation show that the contradiction between the dual goal of listed rural commercial banks' supporting for countryside,agriculture and farmers and pursuit for profit can be reconciled,the realization of the dual goal can be taken into account,but the relationship between the dual goal is low coordination.The study further found that except the SDI value of Chongqing rural commercial bank decreased year by year,the other SDI values showed an overall increase trend.The performance score of rural commercial banks increased year by year.After the listing,rural commercial banks increased their efforts to support for countryside,agriculture and farmers.However,the profitability of rural commercial banks declined in different degrees compared with that before the listing,and the net interest rate was the main reason for the decline in profitability.Finally,this paper analyzes the causes of the mitigation of the dual goals of rural commercial banks,and puts forward some countermeasures to make the dual goals of rural commercial banks highly coordinated.