Research On Credit Crunch And Operating Performance Of Rural Commercial Banks Based On Interest Rate Liberalization

From launched in 1996,interest rate liberalization reform in our country,in October2015 to cancel commercial Banks and rural cooperative financial institutions such as the deposit interest rate cap,which means that our country was basically completed,after 20 years of market-oriented interest rate reform has been through repeatedly with interest rate corridor mechanism and two rail and rail started,this shows that the market-oriented interest rate reform on the basis of the original continued to deepen.The reform of interest rate liberalization is a double-edged sword for rural commercial Banks,which can be well used.On the one hand,rural commercial Banks can independently determine the pricing of financial products through negotiation based on the principle of liberalization and allocate credit resources more reasonably.On the other hand,it can improve the operation efficiency and reduce the operation risk.In addition,the reform of interest rate liberalization will force rural commercial Banks to adjust their income structure,vigorously increase non-interest income,strengthen innovation,and develop intermediary business.If the application is not good,the profit model of rural commercial Banks,whose main source of profit is the deposit and loan spreads,will be more impacted.As the interest rate fluctuations become more frequent,the risks of rural commercial Banks will be increased,the profitability will be reduced,and even the risk of bank bankruptcy will be caused.Rural commercial Banks hereinafter referred to as rural commercial Banks,as the main body of rural capital supply,shoulder the responsibility of serving agriculture,rural areas and small and micro enterprises.Therefore,whether rural commercial Banks' credit asset allocation is reasonable and whether their operation performance is improved or not is crucial to rural economic development,rural revitalization and poverty alleviation in rural areas.In recent years,the impact of interest rate liberalization on commercial Banks has gradually attracted the attention of scholars,while the research on the credit and operating performance of rural commercial Banks is relatively insufficient.In this background,this article to Rural Commercial Banks as the research object,analysis of interest rate liberalization of its credit assets as well as the specific impact of business performance,mainly discusses the Interest rate Liberalization under the commercial bank whether there is a credit squeeze and take off farmers from such problems as how the small and its operating performance changes,concrete ideas as follows: first,through to the related research at home and abroad,this paper provides theoretical guidance and ideas forreference.Secondly,the process of interest rate liberalization in China is systematically sorted out.On the basis of previous studies,a systematic interest rate liberalization index is constructed to accurately reflect the degree of interest rate liberalization in China.Then,the collected data of rural commercial Banks are used to make a statistical analysis of their development status,which lays a foundation for the empirical study in the following paper.Thirdly,the static fixed effect model and dynamic system GMM model are used to make an empirical analysis on the credit squeeze of rural commercial Banks caused by interest rate liberalization,so as to study the problems of credit squeeze and capital outflow in rural commercial Banks.In addition,this paper makes empirical analysis on the interest rate liberalization and the operation performance of rural commercial Banks,and analyzes the systematic impact of interest rate liberalization on the operation performance of rural commercial Banks from the three dimensions of profitability,safety and liquidity.Finally,on the basis of the above,the paper draws the corresponding conclusions and puts forward some pertinent Suggestions,such as continuing to promote the reform of interest rate liberalization,strengthening the support for agriculture,rural areas and farmers,and developing intermediary business.The results show that the interest rate liberalization crunch the credit assets of rural commercial Banks,crunch the input of agriculture-related loans,and leads to the tendency of abandoning agriculture and leaving agriculture.In addition,this article found that the interest rate liberalization to Rural Commercial Banks operating performance had a negative effect,but this influence uncertainty,namely,in the short term,the impact of the Interest Rate Liberalization on bank,bank's profit ability,the ability to resist risk and liquidity risk will increase,this has a promoting effect on operating performance of bank.In the long term,with the release of deposit interest rate,rural commercial Banks will face severe problems such as reduced profitability,increased risks and enhanced liquidity,which has a negative impact on the improvement of operating performance of rural commercial Banks.