Shanghai Interbank Lending Rates As An Empirical Analysis Of The Benchmark Interest Rate In Our Country

Interest rate is the price of the loan funds, which is an important index for theeconomy. Benchmark interest rate plays a dominant role in the interest rates system.With further financial reform and financial innovation, the pricing of financialproducts needs benchmark interest rate. Furthermore, benchmark interest rate can bethe intermediate target of macroeconomic regulation. China lacks the key benchmarkinterest rate. China is cultivating Shibor as the benchmark interest rate.So it isimportant to study the functions of Shibor as benchmark interest rate.The first part of the paper is the introduction. It is about the research backgroundand research framework, innovations and defects. Then,this paper is divided into fourchapters. The first chapter is about the relevant literatures at home and abroad aboutthe benchmark interest rate.The second chapter discusses the process of establishment of interest ratessystem. It mainly analyses the practices of Shibor in the financial market. Theconclusion is that Shibor plays a more and more important function in the pricing ofthe financial products, but the functions of Shibor is limited.The third chapter is empirical analysis of Shibor. It is mainly about thecorrelation test and stability test of Shibor. The conclusion is that the short-termShibor fit in with the standard of benchmark interest rate. However, the long-termShibor lack enough market basis, which are not able to lead the other market interestrate. Shibor is stable,so it can be used in the pricing of financial products.The fourth chapter studies the problems of Shibor,and points out somesuggestions to develop Shibor as benchmark interest rate. It is necessary to expand thequoting banks, promote the use of Shibor in the pricing of financial products, developcurrency market, promote interest rate liberalization, improve the financial system.