Research On Impacts Of The Level Of The Interest Rates On Risk-taking Behaviors Of Commercial Banks

In 2008,the outbreak of American subprime crisis evolved into a global economic crisis. In this crisis, the world's financial system were subject to the varying degrees of impact, and in the whole world there were numerous bank bankruptcy. By 2011, the European Union break out the serious debt crisis after the economic crisis. The grim international economic situation make the academia and business circles again to focus on commercial bank risk-taking behavior. In order to effectively control the bank risk, the Basel Committee on Banking Supervision (BCBS) also timely introduce the" BaselⅢ".Banks are the financial institutions by managing currency, while the interest rate is the embodiment of currency prices, so the rates'change will influence the risk-taking behavior through the bank's business operation.With gradual opening of financial market and the national macro-control means increasingly mature, China's interest rate environment will change more frequently.So, researching how the level of interest rates influence commercial bank risk-taking behavior will be a long-term guiding significance.The first half focuses on elucidating the theory.The second chapter discusses the commercial bank risk-taking behavior concept and influencing factors, which specifically introduces other explanatory variables except the level of interest rates, including their definition, function and literature.The third chapter introduces the interest rate's formation mechanism and influence in our country, elaborated the marketization theory of interest rate, practice achievements of each country and the reform course in our country, and finally introduced the legal interest rate in our country.The latter part of this article mainly use the Bankscope database, bank annual report and the data on the website of the people's Bank to analyse the 13 listed banks risk-taking behavior with panel data regression, focusing on the interest rate's effect.This paper selects the other explanatory variables including return on average assets, asset scale, the growth rate of GDP, broad money growth rate, market concentration degree, the Finn Dahl index and supervision index.In addition,this paper uses the risk assets ratio and non-performing loan ratio to measure the commercial bank risk-taking behavior.Regression results show that, the level of interest rates and the return on average assets are significant in every regression equation, and other indicators is selectively significant in different equation.In different model, explanatory variables produce an different effect on bank risk-taking behavior.In general, asset scale, the growth rate of GDP, broad money growth rate and supervision index are negatively correlating with the bank risk-taking. In addition, the bank risk level will increase with the market interest rates, while the legal interest rate rise will help commercial banks reducing the amount of the non-performing loans, but also increase the proportion of risk assets.The innovation of this article is mainly reflected in the following aspect:the domestic commercial bank risk-taking behavior studies mainly focus on market discipline, regulatory pressure, franchise value,governance structure and so on, and this paper focuses on the interest rate's effect on bank risk-taking behavior.