Research On The Development Of Rural Banks Under The Interest Rate Market Conditions

From July 20,2013, the People’s Bank of China canceled the lower limit of 0.7 times of lending rates for financial institutions, loan interest rates will be determined by the financial institution on commercial principles, while rural credit cooperatives ceiling are no longer set up lending rates. This means that the central bank will fully liberalize lending rates of financial institutions and further promote market-oriented interest rate reform. The introduction and implementation of policies achieving the original intention of the central bank will depend on the reform and cooperation of financial institutions themselves, and improvement of the environment of the entire financial infrastructure. To safely and orderly promote the process of market interest rates, we should pay special attention on the relatively weak link-rural financial reform. Rural banks appear to make up the gaps in the field of rural finance and promote rural financial reform and socialist new rural construction. However, various problems exist in the development of rural banks in these years. Interest rate market reform made the weak rural banks face new emerging opportunities and challenges. It is not difficult to see that in the interest rate market conditions, the study of how rural banks play their system and information superiority, avoiding brand and size disadvantage, enhancing their core competitiveness is crucial.Contents of this paper are divided into five parts. The first chapter presented the background, purpose and significance of this topics, summarized the current research, the research methods and the innovation of this paper; Chapter Ⅱ defined the rural banks, analyzed the historical and current development of rural banks, and concluded that the existence of the main problem of rural banks; Chapter Ⅲ reviewed the interest rate market and the related theory of market-oriented interest rate reform process, and analyzed the opportunities and challenges for rural banks; Chapter Ⅳ summarized the international reference; Chapter Ⅴ stressed that our rural banks should seize this opportunity, identifying their target market positioning, taking up the challenge to better serve agriculture and contribute to the socialist construction.Aiming at the emerged problems and development status of China’s rural banks since its inception, applied a combination of theoretical analysis and practical analysis to explore opportunities and challenges under the current interest rate market conditions faced by rural banks, summed up the experience of domestic and foreign interest rate reform lessons and found suitable measures to improve the development of China’s rural banks, to contribute to the future development of China’s rural bank.