The Interest Rate Market Impact And Coping Strategies Of China's Listed State-owned Commercial Banks

Just as its name implies, interest rate marketization means the interest rate is decided by the free market. The analysts from U.S., Ronald I Mckinnon and Edward S. Shaw, regards the interest rate marketization should make the interest rate dependent to the change of supply-to-demand balance, and the government should take away all of interrupt and regulation. However, the opposite voice from STIGLITZ said that the interest rate marketization should include the appropriate control to the deposit-and-loan rate from the government. The domestic researcher LiYang believes that the essentials of interest rate marketization is to change the risk pricing process of finance activity, the aim of interest rate marketization if make the rate level, risk structure and maturity structure depend on the free competition of capital supply-to-demand sides.Almost all developed and most of developing countries have finished the process of interest rate marketization. As the results of this process come out, the interest rate marketization released the pressure to the interest rate, made the real rate to be zero-above, increased the saving ratio, and pushed the economy increased. However, some countries that have finished the interest rate marketization did not touch the expected target. Contrarily, the process caused the financial crisis and disaster the economy.Now, the interest rate marketization process in China has come to the most key and also most difficult stage which means to release the regulation of RMB deposit-to-loan interest rate step by step. Since the long-historical regulation to the interest rate, the interest rate marketization may make the domestic banks loss the last "crutch", and also improve the market-oriented competition system. As the three listed banks have the unique influence both in domestic and global market, we choose the listed state-owned commercial banks as the objective of this paper to research the influence of interest rate marketization to our bank industry.The paper can be divided into six sectors. The first sector introduces the theory of interest rate marketization and the source of the subject. This part summers the definition and research conclusion of the interest rate marketization. The second part, we choose two developed countries, US and Japan, and four developing countries, Argentina and Chili as the representatives to the Latin countries, Thailand and Korea to the Asia countries as the objectives to introduce the process of interest rate marketization. The third sector, we introduce the process of the interest rate marketization in China, and we suppose the steps to finish the marketization process in future: remove the bottom rate regulation to the loan interest rate, cancel the top rate of deposit which should be decided by the financial institute.The forth part concludes the suggestions that are given by the interest rate marketization process in other foreign countries. The fifth sector analyzes the interest rate risk taken by the interest rate marketization of the listed commercial banks, it proves that as the advance of the interest rate marketization, the interest rate risk will be increased, and the listed state-owned commercial banks should take steps to reply to the challenges. To answers up to these challenges, the sixth part supposes suggestions from different aspects including bank governing structure, management model, business operation and interest rate management.