Shibor A Feasibility Study On The Money Market Benchmark Interest Rate In China

This paper, the author attempts to adopt market-oriented reform of china's interest rate review, to analyze how to choose the benchmark interest rate of money market. By leanring the relevant experience from the Western Country, and using the data from Chinese financial marcket ,the author analyzes the possibilities of five interest rates,try to find a interest rate of money market which is suitable for implementing the money police of our Central Bank. Finally, the authors draw a conclusion about the suitable benchmark interest rate, which is Shanghai Interbank Offered Rate(Shibor).More analyses are done on Shibor.The author finds that Shibor does get some imperfect factors at present. So, at last the author put forward some procedures to perfect it.This article consists of five chapters:The first chapter is a general introduction of interest rate theories. The author discusses the meaning of benchmark interest rate of money market,and makes a summary on the different kinds of meaning.At last the author discusses the need to choose the benchmark interest rate for the subsequent chapters provide the theoretical basis of the study.In the second chapter, the author introduced the general principles and international experience of choosing the benchmark interest rate of money market under market-oriented reform of interest rate.Then,the author discusses how to choose the benchmark interest rates in China, providing the guide for the back section of the qualitative and quantitative analysis.In the third chapter, the author introduced Shanghai Interbank Offered Rate(Shibor) and analyzes five interest rates of money market,then draw a conclusion that Shibor should be benchmark interest rates in China.The forth chapter emphasizes on effect of the operation of Shibor. The author make a quantitative analysis of current interest rate of money market,point out Shibor should be benchmark interest rates in China.In the fifth chapter,the author uses the conclusion of the quailtative and quantitative analysis as a basis to put forward some procedures to perfect Shibor.