Research On The Strategy Of Improving The Profitability Of Y Rural Commercial Bank Under The New Normal Of Economy

In recent years,with China’s economy entering a new normal,China’s economic operation has entered a new stage.The new stage is characterized by high-speed economic growth,economic structure optimization and upgrading,and economic growth power turning to innovation driven.Under the new normal,the original development mode and operation mode of China’s banking industry are challenged.In the past,the extensive development mode that only relies on expanding the scale of assets and expanding the interest margin between deposits and loans to achieve profits is unsustainable.Therefore,only by following closely the development pace of "transforming the mode,adjusting the structure and transforming the growth power" of macro-economy,changing their own management concept and taking the road of differentiated development driven by innovation,can we achieve the opportunity of sustainable development in the dual changes of macro-economic situation and market competition pattern.2020 is the year of building a well-off society in an all-round way and the end of the 13 th five year plan.As an important part of China’s rural financial system,rural commercial banks play an irreplaceable role in financial support and promotion in building a well-off society in an all-round way and Rural Revitalization Strategy.In this context,how to improve the profitability of rural commercial banks is analyzed and studied to further optimize the operation and management strategies to meet the development needs of the new normal economy.This paper takes the study on the strategy of improving the profitability of Y rural commercial bank under the new normal of economy as an example.The basic research ideas include: firstly,consulting the literature about the profitability of commercial banks,having a relatively macro grasp and cognition of the research on the profitability of domestic and foreign commercial banks;secondly,the basic situation of Y rural commercial bank,the main research object of this paper,including the introduction and development calendar of Y Rural Commercial Bank The process,operation and financial data have a more detailed understanding and cognition;then choose DuPont analysis method to analyze the profitability,profitability sustainability,growth and relevant indicators of income and expenditure structure of Y rural commercial bank under the new normal,and get the profitability status and profitability characteristics of Y rural commercial bank.Finally,through the analysis of the macro and micro factors that affect the profitability of Y rural commercial bank,the paper puts forward some suggestions to improve the profitability of Y rural commercial bank.The conclusions are as follows:(1)y rural commercial bank has abundant capital in recent years,and its asset quality is stable and risk controllable.However,the efficiency of asset utilization is low,so we need to further improve the internal management,optimize the business strategy and improve the business efficiency.(2)At present,the profitability and profit level of Y rural commercial bank are not high.The profit model dominated by interest margin of Y rural commercial bank will be impacted with the deepening of interest rate marketization.At the same time,new product development and new market development will be restricted by the weak risk bargaining and scientific pricing ability of Y rural commercial bank.Single business structure,lack of new business innovation ability,lagging development of intermediate business and unbalanced development of product structure all affect the stability and improvement of sustainable profitability of Y rural commercial bank.(3)Y rural commercial bank’s growth and profit stability are insufficient.Influenced by the increasing downward pressure of macro-economy,the tightening of financial supervision and financial deleveraging,the growth rate of total assets,operating revenue,operating profit and net profit of Y rural commercial bank has been fluctuating and declining in recent years,with unstable profitability.It can be predicted that if y rural commercial bank does not adjust the existing business model and improve its profitability,it will increase the uncertainty of future profitability,thus facing more difficult competitive environment and survival pressure.(4)The cost control of operating expenditure of Y rural commercial bank needs to be strengthened.In recent years,y rural commercial bank has adjusted the performance appraisal mechanism,and the wage and salary expenditure has decreased significantly,but the related operating costs have been increasing.If y rural commercial bank does not pay attention to the cost monitoring and benefit evaluation,it will affect its profitability further.There are several suggestions to improve the profitability of Y rural commercial bank under the new normal of economy:(1)improve the interest rate pricing mechanism,enhance the initiative and flexibility of interest rate pricing of Y rural commercial bank,and improve the differentiation and refinement level of pricing.(2)Actively expand intermediary business and cultivate new profit growth points.Through strengthening the independent research and development ability of product innovation,strengthening the assessment and management of the development of intermediary business,establishing and improving the risk monitoring mechanism of intermediary business,and strengthening the publicity and marketing,the market share of intermediary business will be expanded to become a new profit growth point.(3)We will promote the construction of smart banks and strengthen channel operation capabilities.On the one hand,accelerate the construction of smart banks and further optimize the service channels of e-banking;on the other hand,optimize the regional and centralized management of outlets and enhance the marketing and expansion functions of physical outlets.(4)Taking the strategy of Rural Revitalization as an opportunity,we should give full play to the advantages of serving the main business of "agriculture,rural areas and farmers".Fully adhere to the market positioning of serving small and medium-sized micro enterprises,based on agriculture,rural areas and farmers,supporting county economy,serving urban and rural residents,through precise docking with government departments,developing characteristic industries,promoting industrial integration,building multi-level financing channels,exploring diversified financing methods,constantly improving the level of rural financial services,and playing a major role in supporting agriculture.(5)Strengthen the ability of cost control and improve the efficiency of operation and management.By reducing deposit cost,strengthening budget preparation and implementation,strengthening cost control effect evaluation,further strengthening cost control effect.(6)We will improve the risk prevention and control system and enhance the level of internal control and management.Strengthen the internal control management level by strengthening the standardized construction of the system,promoting the construction of Y agricultural commercial bank’s intelligent risk control system,strengthening the risk warning prompt,and strengthening the collection and disposal of non-performing assets.