Research On Risks And Precautions Of Rural Financial Service Under The Background Of Interest Rate Marketization

At present, under the guidance of policies in our country, rural financial institutions system has gradually established and get development in the process of gradual reform, but under the background of market-oriented interest rate, the pressure of rural financial institutions compared to other financial institutions have disadvantage in the market environment, with the internal and external risks, while the risk prevention ability is not enough. These risks seriously inhibited the development of rural financial institutions and resulted in distress to the development of the rural economy. Therefore, according to present situation of rural financial institutions, studies all kinds of risks existing in Chinese rural financial institutions and puts forward the corresponding improvement suggestions and policies to its healthy development.Specifically, this paper includes several aspects:First, a comparative study of domestic and foreign literature; second, the research and analysis of the theory and practice of the process of market of interest rate; thirdly, we make an analysis on the connotation of the rural financial organizations.Based on the analysis, we study the credit risk of rural finance with game theory, focusing on the state and problems of credit risk; the forth point, we make research on the liquidity risk of rural financial organizations and the current problems in their development, at the same time, make empirical analysis on the liquidity risk of rural financial organizations through liquidity indicator method; the fifth is brief introduction to other risks confronting rural financial organizations; the sixth point, establish an effective risk prevention system based on the comprehensive risks analysis, to propose sound advice and take measures from policy, market, law and supervision environment.The conclusion of this thesis is drawn as follows:in this situation, the development do rural financial organizations are facing severe challenges, while needs more improvement. Firstly, the rural financial organizations are confronting with various risks-market risks:credit risk, liquidity risk, operation risk, reputation risk and legal risk and so on, among which the credit liquidity risk calls for the most attention. Secondly, facing to the market-oriented interest rate, the current risk prevention mechanism and system needs more and urgent improvement to serve its duty. Thirdly, the main risk comes from the market as the rural financial organizations reform is closely related to the market-oriented interest rate, so during the risk prevention more attention should put onto the establishment and improvement of the market environment.In conclusion, when the rural financial institutions face the challenge of market of interest rate, it can solve the problem from both the macroscopic and microcosmic perspective:Macro-level, we need to build the credit environment and force the policy; Micro-level, the rural financial institutions should try to transfer their business and make innovations for their service and tasks, manage and control risks by inner management, establishing the risk early warning.