Research On Evaluation Of Sustainable Development Capacity Of Rural Banks In Hunan Province

In the critical period of rural deepening system reform,the village banks that were born to fill the rural financial gap are the leading force in the new rural financial institutions.Their asset scale and capital investment are constantly enriched,and products and businesses are constantly innovating.However,with the emergence of financial formats such as Internet finance and private banks,it has brought new competitive pressures to rural financial markets.Meanwhile,the rural banks have gradually appeared the problem of target offset and insufficient profit,which have restricted the sustainable development capacity of rural banks.As a central agricultural province in Hunan Province,with the support of the “one county and two banks” policy,by the end of 2018,Hunan Province has established 51 village banks,which have achieved full coverage of counties and cities and contributed to meeting the financial needs of rural areas.In order to activate the vitality of rural economy,it is of practical significance to explore the influencing factors that restrict the sustainable development of rural banks and improve the sustainable development capacity.This paper takes Hunan village banks as the research object.Firstly,based on the theory of financial development,financial sustainable development and rural financial theory,combined with domestic and foreign research trends,this paper discusses sustainable development.Secondly,the article starts from the specific development status of rural banks in Hunan Province,and analyzes the main problems in the process of sustainable development of village banks from both internal and external perspectives.Then based on the problems,the construction of the sustainable development ability evaluation system of the village bank is based on the principle of availability,comprehensiveness,quantifiability and effectiveness.The data of 12 sample banks in 2017 are selected,from scale strength,depth of coverage,The five aspects of development capability,profitability and risk control ability are evaluated by factor analysis method for the sustainable development ability of Hunan village and town banks.The three most important factors are operation,safety development and liquidity.Finally,based on the empirical results,the villages and towns banks in Hunan Province will be promoted to achieve sustainable development through optimization of operation methods,development capability exploration,risk awareness and policy support.