Rural Banks Under The Interest Rate Market Positioning Analysis

At present, China has entered a rapid interest rate market advance stage,is an important measure of China’s financial reform, he changed the price mechanism of China’s financial markets from a fundamental, guiding the balanceof the entire financial system. Learn from other countries’ experience in market interest rates may know, is a long-term market interest rates, the curve changes course. It re-allocation of financial resources, optimizing financial efficiency, promote economic development, but also bring unpredictable risks. As adeveloping country, uneven economic development, the gap between China and the West, a significant gap between urban and rural areas. In this case, asvillage banks in emerging rural financial institutions must be based on its own characteristics have been the purpose of the implementation of response strategies to deal with risks to seize opportunities.Firstly lists in the interest rate market research scholars, the proposed reform issues; lists the results of the research scholars of rural banks, rural banks summed up the development issues and propose solutions. Second, the three countries with a representative example, the United States, Japan, Argentina,interest rate reform measures and programs analyzed, discussed the various reform measures in different countries and different economic development results and proposed rates Market potential impact on China’s banking industry generated. Then review the interest rate market of the past steps proposed reform issues affecting our country and the interest rate market on the village bank for business. SWOT analysis comprehensive analysis of rural bank exposureto interest rate changes their strengths and weaknesses, opportunities and external challenges of China’s rural banks for the current realities of the market p ositioning, market positioning analysis of the impact of its basic and proposea solution. In a market-based interest rate to accelerate in the background, this article has some practical value.In the current international financial situation, China’s banking sector to promote the interest rate market faces interest rate risk, interest rate risk prediction monitoring capabilities directly affect the financial viability of the banking competition. First, China’s banking industry in the long-term interest rates under control, no need to predict interest rate risk, interest rates do not pay attention to the interest rate risk makes their identification, analysis, prevention and control of the lower level of risk control mechanism is not implemented,not to be corresponding changes in the environment. Second, the main sourceof income is the village bank deposits and poor, less intermediate business,assets and liabilities unreasonable, so the fluctuations in interest rates would have a tremendous impact. Finally, China’s financial sector supervision and management regulations promulgated much, do not form a system, securities, money market imperfections, will have an impact on rural banks. Based on this,the paper also concludes with recommendations: Rural Bank interest rates should begin to establish prevention and control mechanism to deal with the interest rate market; strengthen intermediary business, the use of financial instruments to reduce interest rate risk; countries to strengthen supervision of financial institutions and the introduction of specific laws and regulations.Joined the WTO on China’s economy has put forward higher requirements, our economic system and the economic gap between developed configuration and there, we can only improve their own disadvantage in the competitioninto the strengths, seize the opportunity to grab the opportunity to live. Interest rate market is to increase our market mechanism an important step, whichalso makes our economy more open and inclusive.