The Influence Of Interest Rate Marketization On The Profitability Of Rural Cooperative Financial Institutions In County Area

In October 2015,after five reduction in the benchmark interest rate of deposit and loan in the year,the people's Bank of China opened the benchmark interest rate,marked the completion of the process of interest rate marketization in China.Since 2004,the lower limit management of the loan interest rate and the upper limit of deposit management were carried out.In the 11 years,the reform of interest rate marketization was gradually deepened.Competition in the market is more and more intense.The rural banking institutions in L city have been challenged by the traditional banking institutions whose main source of income is the interest rate of deposits and loans.At the same time,with the deepening of China's interest rate marketization process,with the liberalization of the interest rate of deposit and loan,the introduction of the deposit insurance system,the access of private banks,the intensification of competition in the bank market,the normal market import and export mechanism of the banking industry will be possible.The quality of the staff is relatively low and is at a disadvantage in the competition,so it is very urgent to analyze the development path of the rural cooperative financial institutions in the L city under the background of the current interest rate marketization.In the first chapter,the background and significance of this paper are reviewed,and the relevant literature on the impact of interest rate liberalization on commercial banks is reviewed.The second chapter mainly introduces the overall concept and theoretical basis of interest rate marketization.The third chapter mainly expounds the process of interest rate marketization in the United States and China,analyzes the changes in the overall bank market and the changes in the management strategy of the individual banking institutions in the process.According to the experience of the early American interest rate marketization and the reality of our country,the influence of the interest rate marketization on the commercial banks is mainly reflected in the three parties.The first is that the short-term savings and loan margin of the banking sector is reduced,the profit model bears the impact,while the main position of the indirect financing is weakened,and the commercial banks' sustainable management ability is faced with the test.Two,the banking business risk is further increasing,and the management ability is facing the test.The marketization of interest rates will increase the market cost of funds,and the depositors will choose better savings deposits;accordingly,the bank's risk preference for loans will rise,which will increase investment in high-risk industries.The three is the increase of debt volatility,which challenges the ability of bank capital pricing.The fourth chapter introduces the situation of the operation and development of the agricultural cooperative organization in the L city and makes an empirical analysis on the profit situation of the agricultural cooperatives in the city of L in 2017.It is found that the net profit of the agricultural cooperative institutions in the city of L has been fluctuating since the interest rate market is marketed,and the deposit rate in 2015 has been completely liberalized after a series of interest rates,and then added again.After entering the central bank's window to guide interest rates,the agricultural institutions within the jurisdiction showed a significant imbalance,and net profit fell sharply by 35.11 percentage points.In 2017,the agricultural cooperation organization gradually adapted to the changes brought by the interest rate marketization,and its own advantages had been fully developed,especially the business of the same industry was carried out rapidly,which greatly promoted the improvement of the profit level of the agricultural cooperatives.The fifth chapter analyzes the specific impact of the interest rate marketization on the agricultural cooperatives in the L city from the overall level,mainly in five aspects,one is that the short term deposit and loan spreads are narrowed,the two is the rise in risk preference,the pressure on credit management is rising,and the three is the impact of the current savings deposit,and the four is the increase of the market capital interest rate,and the same Industry revenue increased.Five,liquidity management increased.In the following sixth chapters,we analyzed the advantages and disadvantages of agricultural cooperatives under the background of interest rate marketization in L City,and analyzed the countermeasures.The advantages are mainly embodied in 3 aspects,one is the deep integration with the county economy,the customer loyalty is high;the two is the layout of the network and the convenience of the basic service;and the three is the relatively large amount of idle funds.The disadvantages are mainly embodied in 6 aspects,one is the lack of comprehensive pricing consciousness of deposit and loan,two is the poor ability of risk control;the three is that the source of income is single,the dependence on interest income is formed;four is the lack of information technology support;the five is the low quality of personnel;the six is the inability to innovate,and the model of product and service is single.At the same time,combining with the previous experience,the countermeasures are provided from 9 aspects: perfecting the system and mechanism construction,strengthening the fine management,strengthening the management of assets and liabilities,improving the ability of credit risk prevention and control,and strengthening the management of liquidity risk.It is hoped that the agricultural cooperatives within the L city can effectively improve their students under the background of interest rate marketization.Storage capacity and development ability.The conclusion of this paper is that the landing of the policy on the deposit interest rate marketization makes the dividend period of the bank's policy end.In the long run,the agricultural cooperatives in the L city will be impacted as a small legal person bank.In the face of the new challenge of the full market rate of interest rate,it is necessary to change the traditional profit pattern of the previous large-scale eating difference,actively take effective measures,accelerate the promotion of management,improve the ability of product pricing and risk management,realize the transformation of profit mode,overcome the narrowing of the profit margin and the ratio of interest income.A series of impacts brought by the decline will take the initiative to "transform" to face challenges.