Research On Financial Performance And Influencing Factors Of Rural Commercial Banks Based On Factor Analysis

The Central Document No.1 of 2019 clearly states: "Promote the gradual return of rural commercial banks to serve the local agriculture,rural areas and farmers".In recent years,with the deepening of the new normal concept of economic development,the Party Central Committee has provided strong support for the development of China's rural economy.Rural commercial banks based on rural economic development have experienced significant development under the macroeconomic market Variety.Although the rural commercial banks after the shareholding reform have affirmed their commercial nature,the mission of serving the "three rural" and serving Xiaowei has not fundamentally changed.With the continuous development of new rural construction in my country and the deepening of rural financial reforms in recent years,rural commercial banks,as the leaders of rural financial markets,have taken root in rural markets and are playing an increasingly important role in supporting the development of agriculture,farmers and rural economies.The financial performance of rural commercial banks is reflected in the ability to maintain their own sustainable operations under profitability goals.Constructing a scientific financial performance evaluation system and making reasonable analysis of influencing factors are not only related to the reform and development of rural commercial banks,but also have certain significance for the reform of rural commercial banks and the reform of rural financial systems in economically developed areas of my country.Therefore,this paper uses the financial data of 35 rural commercial banks in 2013-2018 as a sample,uses the relevant theory of financial management,takes financial performance as the starting point,and uses factor analysis to build a financial performance evaluation system,which includes the proportion of agricultural loans.The particularity of agricultural and commercial banks supporting agriculture,then comprehensively analyze the comprehensive performance ranking and regional performance comparison of sample agricultural and commercial banks,and further establish a panel data regression model,empirically analyze the influencing factors of financial performance,and propose corresponding policy recommendations based on the significant results of influencing factors.To indicate the direction for improving the financial performance of rural commercial banks in the future.The specific research contents are as follows:The first part is an introduction.First,explain the research background,research purpose and research significance.Then review the domestic and foreign research,focusing on the summary and analysis of commercial banks' financial performance evaluation andcommercial banks' financial performance influencing factors,and make a literature review.From this,the research content,research methods and technical route are determined.Finally,the innovations and deficiencies of this study are proposed.The second part is related concepts and theoretical basis.Explain the meaning of the financial performance of rural commercial banks and rural commercial banks,and then introduce the classification of financial performance evaluation methods and put forward the relevant theoretical basis.The third part is the financial performance evaluation of rural commercial banks.First,on the basis of literature research and theoretical analysis,establish the financial performance evaluation index system of rural commercial banks from the following four aspects: safety,profitability,liquidity and development,and explain its index connotation,of which the proportion of agricultural loans is The liquidity index is used to evaluate the agricultural support benefit of rural commercial banks.Then,after the data sources and screening conditions are determined,35 rural commercial banks that meet the requirements are selected,and 11 financial performance evaluation indicators from 2013 to 2018 are used as research samples,and a comprehensive evaluation is carried out using factor analysis to obtain the financial performance score and Ranking.Finally,comprehensively analyze the financial performance of rural commercial banks from two aspects: comprehensive performance ranking and regional performance comparison.The fourth part is the empirical analysis of the factors affecting the financial performance of rural commercial banks.First,it analyzes the internal and external factors affecting the financial performance of rural commercial banks,and proposes research hypotheses.Then select the variables and use the financial performance score of the agricultural and commercial bank evaluated in the third part as the dependent variable to select the inflation rate,government intervention,regional economic development level,asset scale,equity concentration,board size,risk management level,employee work efficiency,Nine influencing factors of business innovation ability are independent variables,and the direction of influence is obtained through regression analysis.Finally,the results are discussed through significance test.The fifth part includes research conclusions and policy recommendations.This paper draws the following conclusions:(1)The overall financial performance of the 35 rural commercial banks is at a low level.The comprehensive performance ranking shows that the top agricultural banks have led to financial problems due to large assets,superior geographic location and the development of new financial products.The performance is good;theregional performance comparison shows that the level of financial development in the central and western regions has improved in recent years,and the phenomenon of "emphasis on scale over quality" exists in the eastern,central and western regions.(2)Government intervention and equity concentration have a negative impact on financial performance;the level of regional economic development,asset scale,board size,management innovation capability,and risk management level have a positive effect on the financial performance of rural commercial banks,including asset scale,regional economy The level of development and the ability to manage innovation are significantly stronger.(3)In addition,the impact of inflation rate and employee productivity on financial performance is not significant.(4)Finally,based on the above research results,put forward corresponding policy recommendations from two perspectives of the government and the agricultural and commercial banks: increase agricultural support and vigorously develop the regional economy;optimize government functions and conduct appropriate intervention;reasonably control the scale of agricultural and commercial banks;strengthen risks Control strength;improve internal governance structure;moderately expand the size of the board of directors;optimize the labor mix and improve employee efficiency;innovate financial services.The above research has a certain reference value for enriching the research on financial performance evaluation and influencing factors of rural commercial banks.