The Development Of The Rural Bank Under Interest Rate Marketization Reform

In our new socialist rural construction, the status of rural financial market is very important tofinancial institutions. At the same time, rural financial has always been a weak component of thefinancial system in our country. In order to solve the dilemma problem, the permission has beengot to establish some rural banks in rural area.In our new socialist rural construction, the status of rural financial market is very important tofinancial institutions. The rural financial market is not only the main part but also the weakcomponent of Chinese financial market system. In order to solve the dilemma problem, thepermission has been got to establish some rural banks. As a new-type rural financial institution,the rural bank has its peculiarities, such as high efficiency of loan approval matters and uniqueoperating mechanism, sufficient marketization operation and other advantages, etc. The ruralbank solve the issues concerning agriculture, countryside and farmer, keep China’s sustainedeconomic development, national financial system play a positive part in alleviate the loans barren,lack of financial services, especially the rural small and medium-sized enterprises, apparently inwestern countryside area. However, a series of problems appeared in the rural banks, such aslacking qualified personnel and policy support, and operating mechanism, imperfect governancemechanisms low brand competitiveness. Interest rate marketization brings great negative effect ofaspects of China’s rural banks.However, a series of problems appear, such as imperfect governance mechanisms， thatoperating mechanism is not perfect,and the financing mechanism is not smooth, talented persondifficulties from internal perspective. In the meantime, there are the supply of policy and financialsupervision difficulties from external perspective and so on.As the core of financial liberalization, it’s very important to promote interest rate marketizationreform. Major part of countries all over the world has realized interest rate marketization. Interestrate marketization makes lots of countries benefit, which improving financial efficiency, optimizingfund allocation, improving the whole economic and financial system. And it also makes a numberof banks going bankrupt after the interest rate marketization, and even causing the financial crisis,how to grasp the opportunities of interest rate marketization and meeting challenges becomes anurgent obligation placed in front of rural banks.Based on the survey data collected from50questionnaire of farmers in Caijiapo town, taking Qishan Shuofeng Rural Bank of Baoji as an example, we applies the methods such as depthinterviews, field investigation, learning from successful experience of foreign models and exploringthe existing rural banks operating status, the interest rate marketization for the promotion of ruralbanks to develop and improve their ability to resist risks, from the perspective of Rural Banks,regulatory，the market mechanisms.This paper consists of five chapters.The first chapter the studying background, elaborating the framework and significance, theresearch methods, and innovative points.The chapter two defines the interest rate marketization, and a literature review at home andabroad of that. The necessity of it is proved.The third chapter explains the impact of Rural Banks under interest rate marketization reform.The fourth chapter of the article is to support policies and suggestions for rural banks with theimpact of interest rate marketization, and learn from the successful experience of the internationalsmall and medium banks.The last chapter is conclusion and researching expectation.There are also some deficiencies in the research about the rural bank, theoretical research isalso not enough in depth, lacking of successful practice mode, this will also become my focusattention and study next.