The State-owned Commercial Banks Respond To Interest Rate Market

Interest rate liberation is a reform of financial mechanism, it means gradually release the restriction on interest rate,and let the interest rate be decided by the financial market. The purpose of liberation interest rate is to boost the economy and finance .With china's joint to the WTO,the liberation of interest rate is imperative under such situation, the reform of financial mechanism should be run on international practice , reform of interest rate liberation must be carried on. Compared with foreign commercial banks,the control and the countermeasures of the interest rate risk of local banks arc still in a preliminary stage because our local banks operate in an environment in which interest rate has long been controlled. So the study of the impact of interest rate liberation to the commercial banks and its counter measures has not only the theoretical meanings but also important practical value.This dissertation contains four chapters. The first chapter introduced the definition of interest rate liberal and its theoretic foundation. In chapter 2, with the study of reform of interest rate liberalization in the United States,Japan,Korea and Chili,it summarized some suggestion that is of meaning to the reform of Chinese interest rate liberalization.The third chapter proved the necessity of the reform of Chinese interest rate liberation. Then,it illustrated the feasibility and analyzed the trend of Chinese fostering reform of interest rate liberation. And it illuminated the opportunities and challenges that our banks will meet under the reforming surroundings.The fourth chapter is the focus of this paper. It point out the tactic which the state-owned commercial banks should take in the competitive environment , such as: establishing the stock-holding financial corporation, offering the system guarantee for the interest rate liberation, fostering the establishment of risk management system of interest rate,vigorously developing intermediate business,increasing the quality of commercial banks and strengthening composite competition capacity, bring up all kinds of professional ,and strength the foundation of rate-risk management.In all,the reform of interest rate liberalization is a strategically important,macro and comprehensive resolution. only through thoroughly studying of reaction and making of corresponding strategy, our commercial banks could succeed in the competition.