Interest Rate Liberalization On Rural Bank Profitability And Heilongjiang Province Influencing Factors

As an important base of commodity reserves, rural economic development has great influence on social stability of Heilongjiang province. With the high-speed development of agricultural economy in Heilongjiang province, demand for capital in rural areas increased a lot. Previous research shows that the central bank, within three to six years, has the possibility of opening the interest rate control policy, with which will fully impact China’s existing financial system stability, and impact the financial structure of the existing in our province. So the marketization of interest rate effects on Heilongjiang province rural bank profitability has certain theoretical value and practical significance.The dissertation studies loan interest rate marketization through quantitative research on the impact of Heilongjiang rural bank earnings, to analyze the bank on the impact of loan interest rate marketization, so as to determine whether the loan interest rate marketization of the Heilongjiang province rural banking operation, stability and an opportunity. Pressure test method is taken, by using the sensitivity of loan interest rates caused by the possibility of impact damage, by improving the non-interest income to relieve the loan interest rates on bank earnings impact of quantitative research. Study qualitative first discusses the interest rate marketization and village Banks in Heilongjiang province, and then using the pressure sensitivity test method from quantitative angle, surrounding the impact of the loan interest rate marketization of commercial Banks profit the problem, select Heilongjiang village Banks representative characteristics of Longjiang Village Banks as test objects, will eliminate the reform of the loan interest rate lower limit, which is divided into medium and long-term loan interest rate lower limit. The short-term loan interest rate may lower limit two stages, phases of Heilongjiang rural Banks sensitivity on the profit loss of pressure test.sensitivity to pressure test is one of the stress tests, mainly through presuppose village banks may encounter extreme conditions, through the analysis when experienced extreme later situation can achieve defense mechanisms.The research firstly studies the operation of Heilongjiang rural banks with comprehensive combing with the development of rural banks in Heilongjiang province’s existing problems, and then by using the pressure sensitivity test, the method of quantitative research to decrease the loan interest rate lower limit for the effect of village banks earnings and to the village banks to the profit loss capacity; Finally it is concluded that decrease market-oriented interest rate reform of village banks’ loan interest rate lower limit of Heilongjiang province may cause a decrease in the average yield of loans, which will led to a decline in interest income, inherent in the bank profit.