An Empirical Research on Interest Rate of Village Banks under Sustainable Management

This paper analyzes the policies for the long-term development of village banks in China from the interest rate perspective, referreing to the break-e ven model and Rosenberg model, which are the most developed microfinance models worldwide. Given the actual situation in China, the paper does an empirical stud y, using the data from the village banks in China. The result shows that high in terest rate is complied with market regulation, and it is the basis of microfina nce for three dimensional rural economics. Moreover, the interest rate provides support for the village banks- sustainable management.