Studies On The Interest Pricing Of Rural Small And Medium-sized Financial Institutions

Rural small and medium financial institutions are important components of our financial system and play an important role in our social development. Especially in rural economy, they are the main forces in supporting the rural SMEs, the "three rural" development, solving the problem of agricultural modernization, promoting rural financial sector development, and they play a crucial role in solving the financing difficulties of farmers and improving rural financial services and so on. However, The reality is that, because the lack of a comprehensive interest rate pricing system, many problems are existing widespread, such as the high interest rate, the single pricing mechanism and so on. These problems restrict the healthy development of the rural SEMs and plague the majority of practitioners in rural SEMs. So, how to form a scientific and rational lending rate pricing mechanism, effectively reducing the rural SEMs’loan interest rates, has become a hot topic between the rural financial theorists and practitioners.In this paper, we take the Shandong X RCCs for our example, to explore the main factors of lending rating pricing in China’s rural small and medium financial institutions, and find a viable method to improve the loan interest rate pricing mechanism. Therefore, this article is divided into six sections to study this problem:Chapter Ⅰ is the introduction. It describes the topic, background, significance of this paper, reviews the relevant literature and research, and then briefly describes the structure of this article. Chapter Ⅱ is the theoretical basis. This part introduces the basic theory of interest rate and introduces three basic models:cost-plus model, the bench mark rate plus point model and the customer profitability analysis model. Chapter Ⅲ is qualitative analysis. Firstly, this part introduces the concept and the characteristics of rural small and medium financial institutions. On this basis, this part analyses the factors affecting rural small and medium financial institutions lending rate pricing. Chapter Ⅸ is empirical analysis. From the macro, this part reviews the development process and status of the rural small and medium financial institutions. While from the micro, introduces our case, Shandong X RCCs, selects the relevant data of Shandong X RCCs and constructs the basic interest rate pricing model, finding the main factors that affecting the lending rate. Chapter V puts forward the proposals for the lending rate remained at a reasonable level.