China's Commercial Banks To Loan Pricing, Market-oriented Interest Rate Environment To Explore

There are two sorts of interest rate policy, one is interest rate control, and the other is interest rate marketization. Which one a country practices is close related to its economic development actuality. The national interest rate policy in majority countries has experienced a process which government control went to marketization since the World Warâ…¡end. In both post-war economic instauration and development period, for realizing a certain economic plan or industry target, almost all of countries practiced the low interest rate control policy. With the economic development level increasing continuously, the economy increase way changing, especially the economic system heading for marketization progress increasingly thorough, the proper irregularity of low interest rate control gradually appeared. From beginning of 1980's, many nations are positive to practice the reformation of the interest rate marketization. China, after reform and open-up, is no exception, practicing interest rate marketization reformation gradually is also her inevitable choice.As federal funds was founded in the whole country in 1996, the rate was unloosen, whose upper limit was cancelled. That means rate reform has strode its first material step. Some of national debt and bonds were issued by the means of marketing rate in 1998. From the year 1998 to 1999, there was twice increasing the float range of rate, by 10% to 30% of the tiptop float range. Big foreign deposit was marketed as well, whose rate was decided by commercial bank and insurance company.To predigest kinds of lending rate, to cancel most of favorable lending rate, and to perfect personal housing lending rate system, which all were done in 2002. In 2003, to reform the mean of postal deposit. In 2004, to increase the up limit on the base of down limit of lending rate float range of financial institution. Which means, on the benchmark of...