Research On The Development Strategy Of KEL Rural Commercial Bank

As a local financial institution in the city,KEL Rural Commercial Bank plays an important role in supporting the economic and social development of the city.Since 2013,KEL Rural Commercial Bank has achieved rapid development with the help of banking reform,and the market share of deposit and loan market ranks first among financial institutions in the city.However,due to the long-term unresolved problems accumulated in the reform and development,the business indicators of KEL rural commercial loanks have declined significantly since 2018,the deposit and loan structure is unreasonable,credit risks are exposed,and non-performing loans rebound significantly.Deep-seated contradictions such as slow marketing,single product approach,unreasonable corporate governance,unreasonable staffing,and imperfect institutional mechanisms are gradually emerging.It can be said that KEL Rural Commercial Bank is currently in a critical period of climbing and transitioning.Based on the above research background,this paper comprehensively uses the research methods such as literature research method and case study method to study the development strategy of KEL rural commercial banks.First,it analyzes the basic situation of KEL rural commercial bank and the business operation status,so as to preliminarily judge the problems it presents in the course of business:in the aspects of governance structure,personnel management,incentive constraints,compliance management,etc.The large omissions have caused KEL Rural Commercial Bank's development momentum to be insufficient and exerted in recent years.Secondly,the PEST analysis method is used to analyze the macro-environment of political and legal environment,economic environment,social and cultural envirorunent,and technical environment.Secondly,With the help of Porter's five kinds of power competition models,the KEL city-wide banking industry's competitive environment is analyzed.The SWOT analysis method is used to comprehensively analyze its external opportunities and challenges,internal strengths and weaknesses,and then determine the KEL rural commercial bank's transformation and development strategy.The combination of innovation and technology,quality improvement,differentiation and compliance and strategy has promoted the transformation and development of KEL Rural Commercial Bank.Fourthly,the strategic choice of KEL Rural Commercial Bank is mainly based on the reversal strategy,and the strategic implementation is explained from the three aspects of the company,management and functional levels;and the strategic tasks for the short,medium and long phases are respectively established as:Development,cross-regional scale operation and listing operation;finally,from the four dimensions of improving corporate governance,improving science and technology support,strengthening auditing capabilities,and raising compliance awareness,we will build a guarantee mechanism for strategic implementation.Through the relevant research on the development strategy of KEL rural commercial banks,this paper enhances the relationship between the strategic planning management and actual operation of the Bank,and provides more practical guidance for the implementation of the strategy,thus contributing to the sustainable development of KEL rural commercial banks.The formulation of a scientific,stable and long-term strategic goal is not only conducive to the efficient operation of the Bank,but also to other operating agencies in the same industry as a reference case for the expansion of its strategic development.