The Operation Performance And Interest Rate Risk Management Of Small And Medium Sized Banks In The Reform Of Interest Rate Marketization

In the past few decades,financial liberalization has been the main trend in the development of the world financial market.The reform of interest rate marketization has been realized in many countries and has a far-reaching impact on the financial sector,especially the banking industry.In terms of experience,the impact of interest rate marketization on the performance of commercial banks varies from country to country.In some countries,interest rate marketization can enhance the profitability of commercial banks and promote the development of banking industry.In other countries,interest rate marketization destroys the original financial ecology,which brings income pressure to the banking industry,aggravates the fluctuation of the financial market and even brings the financial crisis.But in general,the interest rate marketization reform in most countries will help to improve the allocation efficiency of financial resources and promote the healthy development of commercial banks.After the liberalization of interest rate control,the competition of financial institutions will become more intense than before,and the trend of investment and financial disintermediation will be more and more extensive.The fluctuation of deposits and loans of commercial banks will The liquidity management of commercial banks is more difficult.The spread of deposits and loans in the financial market is getting smaller and smaller,which will bring risks to the commercial banks' business and business performance,but also bring higher interest rate risk and more complicated term structure to the banking industry.In this process,small and medium-sized banks due to asset size and institutional settings,some restrictions,compared to large banks will face greater interest rate risk.In the commercial banking system,large commercial banks and small and medium commercial banks together constitute a complete banking market.Small and medium-sized banks enriched the financial market structure,improved the service level of the financial industry,and its flexible management system became the pioneer of banking reform.International experience shows that the competition of small and medium-sized banks will be more intense in the process of marketization of interest rate,the M&A behavior among banks will increase significantly,the commercial banks with poor performance,low risk management ability and insufficient core competitiveness will be eliminated risks of.Therefore,it is important to study the influence of interest rate marketization on the performance of small and medium-sized banks in China and the challenges to their risk management and to explore the development strategy of small and medium-sized banks in the new economic normal conditions for China's financial sustainable development.By combing the literature on interest rate marketization,the author finds that the research on interest rate marketization stays at the macro level,while ignoring the performance and risk management of small and medium banks.In fact,the interest rate market-oriented reform process,different nature of the main property of the bank may show different performance characteristics,the banking market structure also affect the interest rate market-oriented objectives.Interest rate marketization process,small and medium-sized banks operating asset-liability structure has not been studied.Under the new situation,how to balance the benefits and risks between small and medium-sized banks becomes a topic of common concern to the industry and academia,and these problems should be studied in depth.From the international comparison,the developed countries and developing countries due to the history,economy,politics,culture,international environment and other factors,interest rate marketization results vary widely.Generally speaking,the interest rate marketization of small and medium commercial banks more challenging.In the process of interest rate marketization,regulators should establish an effective monitoring system to prevent the occurrence of vicious competition of financial institutions,strictly monitor the increase of risk appetite of commercial banks during interest rate liberalization,and pay close attention to the interest rate that commercial banks may bring risk.This article uses the qualitative analysis method,analyzes the bank market structure and the interest rate market reform emphatically.Limited by China's banking market structure,market interest rate formation mechanism of the lack of market-based.Therefore,it is suggested that small and medium-sized banks with clear property rights should be introduced to enrich China's banking market structure.In the banking system,the introduction of private banks to enrich the commercial bank property rights structure,breaking the path of China's banking reform locked state,to achieve high efficiency of bank governance and accelerate the process of marketization of China's banking industry.And then build a competitive market base for real interest rate marketization and realize the market self-discovery function of interest rate.Based on the international experience,I assume that the negative impact of interest rate marketization on the performance of small banks is bigger than that of the big banks on the operating performance of small and medium banks when studying the influence of interest rate marketization on the performance of small and medium banks.An empirical study found that small banks' ROAs were 0.2 percentage points lower than those of large banks.We believe that small and medium-sized bank assets,small,low ability to absorb deposits,motivated by narrowing deposit and lending spreads to cope with fierce market competition.Due to the mismatch of asset-liability structure is much higher than the large banks,the face of interest rate marketization,small banks operating pressure than large banks.In this regard,regulators should adequately assess the risk of small and medium banks to market interest rates,carefully assess the follow-up policy risks.The author suggests that small and medium-sized banks to play a small management level,the right to decentralize and determine the advantages of short time to create risk pricing,product innovation,quality services,special ability.I believe that small and medium-sized banks to adhere to around SMEs to start financial services for small and medium enterprises to provide more personalized and innovative products and services.Finally,the article will focus on the impact of interest rate marketization on interest rate risk management of small and medium-sized banks.The main types of interest rate risk are repricing risk,basis risk,yield curve risk and option risk.The empirical analysis shows that the interest rate sensitivity ratio of large banks in the first one-third of the banks is 0.68 in 2014,while that in the latter three-thirds is 3.81,much higher than 1.This means that the interest rate risk of small and medium banks is greater than the big banks,net interest income and net profit by the market more volatile.I suggest that small and medium-sized banks should strengthen the prospective study of interest rates,carefully do a good job of asset liability management,interest rate risk management tools,the interest rate sensitivity gap target in the net capital can withstand the range,and actively guard against financial risks.