Soft Information, Core Competitive Edge and Private Relationship Lending - A Case of Village Banks

In view of the development problems of village banks, through introducing the concept of private relationship lending, the functions of soft information. the channels of village banks for collecting soft information. and the private relationship lending of village banks under Chinese rural human environment of highlighting relationship while despising rationality are proved. According to the recognition standard of core competitive edge, it can be concluded that me core competitive edge of village banks is private relationship lending. In the first place, these lands of small and medium- sired quarter banks have competitive advantages in launching private relationship lending; in the second place, the lending businesses of village banks based on soft information attracts small and medium clients; in the third place, the private relationship lending has realized the scale economy. Furthermore, the reasons why village banks can not display the core competitive edge have been analyzed, firstly, village banks have not found that private relationship lending is their core competitive edge; secondly, the internal motivation on establishing private relationship lending of village banks is insufficient; thirdly, village banks have not prepared well in developing private relationship lending; The relevant policies and countermeasures are put forward, including transforming idea and vigorously developing private relationship lending; intensifying training and improving the quality of personnel involved; strengthening supervision and avoiding the violation behaviors of personnel involved; emulating experiences and perfecting the private relationship lending mechanism of village banks.