The Impact On The Operating Performance And Response To Interest Rates Iberalization Which Is By Agricultural Bank Of China In Counties

The county-level branch offices of Agricultural Bank of China (hereinafter referred as "ABC") are its most basic operational cost centers,playing an important role in serving the agriculture,the countryside and the farmers,forming the base of its competitive ability.In recent years/with the progress of ABC’s commercialization reforms, great changes have taken place in its county-level branch offices,such as more delicate internal management,better-balanced development, more self-disciplined risk control,more diversified profit-making ability.However,with the progress of the national finance reforms,the marketization of interest rate,which represents the most important reform on capital prices,has nearly come to its end. At present,the interest rate of loans and bills discounting rate of banks will be decided by the market except its upper limit. The marketization of interest rate has led to the shrinking of the difference between deposit and loan interest rates,forcing the banks to strengthen their market competition ability, innovation development ability, risk control ability and value creation ability.Through analyzing the influence of interest rate marketization on banking industry,especially its influence on the business operation, internal management,products innovation,risk control, profit earning of ABC’s county-level branch offices,tbis paper points out the main problems ABC’s county-level branch offices have to face in serving the agriculture,the countryside,the farmers and the county economy, and gives them solutions and ways.