Research Into Causes And Countermeasures Of The "Withdrawal Difficulty" Event In Henan Rural Banks

In recent years,with the rapid development of China’s rural banks,the risk has also increased.The economic downturn background and the competitive pressure of the big banks have made the risk level of rural banks rise significantly.According to the rating results of financial institutions by the Central Bank in 2021,out of a total of 4398 financial institutions in the country,rural banks accounted for 1645,of which 103 were rated as highrisk institutions,accounting for 32.59% of all high-risk institutions.However,in terms of the quality of credit assets,the non-performing loan rate of rural banks in recent years is also far higher than that of urban commercial banks and rural commercial banks,and shows a rising trend.The emergence of rural banks began in 2006,when the reform of financial institutions in rural China turned the rural credit cooperatives originally serving rural areas into financial institutions such as rural commercial banks,and the service objects were also transferred from rural areas to cities,leaving a gap in rural financial supply.In order to fill the gap in the financial system in rural areas,the state began to organize the establishment of new rural financial institutions,including village banks,in 2006.In order to solve the problem of inadequate financial competition in rural areas,the State also issued relevant documents to adjust and relax the access policy of rural financial institutions.With the support of policy assistance,the asset size of rural banks has grown rapidly.Because of their large number and small size,they have played a role in supporting agriculture and supporting small businesses in the vast rural areas of China,greatly promoting the development of rural economy.However,since its birth,village banks have been faced with problems such as high pressure to collect deposits,weak anti-risk ability,and corporate governance defects.In recent years,the overall economic downturn environment,the emergence of Internet finance and the sinking competitive pressure of big banks have made village banks a high-risk area.This "withdrawal difficulty" incident of Henan village banks exposed the problems of nonstandard equity governance,lack of internal control of the company and insufficient external supervision of some village banks in China.This paper selects the "difficult withdrawal event of Henan Rural Bank",which has attracted much attention recently,as the research object.The research methods used are case analysis and literature analysis.First of all,it introduces the construction background and current situation of Henan Rural Bank,the occurrence process of the "difficult withdrawal" event,and the adverse impact on financial consumers,rural banks and local finance,and then analyzes the internal and external reasons for the event.Internal reasons include the concentration of equity of village banks,the failure of internal control of the company,the deviation of village banks from the main business direction of supporting agriculture and supporting small businesses,and the single source and application channel of funds,which are limited to regions.The external reasons include the lack of supervision of rural banks,the rise of Internet finance and the downtrend of large bank business to occupy the rural banking business market,as well as the lack of risk awareness of China’s financial consumers,the pursuit of high income and the neglect of financial risks.Finally,the corresponding suggestions are given from three perspectives of village banks,regulators and financial consumers.Village and town banks should operate in compliance with the law to prevent the operation from deviating from the main business,taking root in the grassroots and returning to the local market,and realize dislocation competition;Regulators should improve regulatory laws and regulations,prevent hidden risks of rural banks,carry out equity penetration identification of rural banks,and form normalized supervision;Financial consumers should improve their risk awareness and invest prudently according to their individual risk tolerance.