A Study On The Impact Of Interest Rate Marketization On China 's Commercial Banks

The year2015is the last year of China’s twelve five plan, and China’s economyis confronting downward pressure, which requires China’s economy to adapt to thisnew sjituation and conduct deep-rooted reform. Therefore the year2015is going to bea year of significant revolutions in politiacal, economical and finacial area. As the keyand difficult point in finacial reforem for a long time, interest rate liberation must beon the forefront of reform. And what the cental bank governor of China ZhouXiaochuan had said during the two sessions made it more clear. Since2013when thepeople’s bank of China opened up the loan interest rate marketization, deposit interestrate marketization has already come to the attention of nest refoem of central bank.However, market-oriented interest rate has much effect and challenges on commercialbanks in China whose major means of profit rely on the gap between savings andloan.The first part of this dissertation demonstrates relevant theories of interest ratemarketization. Interest rate marketization means the money market and capital marketinterst rates are determined by market supply and demand, which includes financialdevelopment theory involing rate decisions, conductions and rate management. Thesetheories explains the necessity of refor in interest rate marletization. Then, thisdessertation analyzes the degree of current interst rate marketization in China and setlocation of interest rate marketization in the long-term process of reform. Afteranalyzing the current situation, this dessertation uses comparision research methodcomparising different methods that each nations took in the interst rate marketationreform and different result that led to. Afterwards, by logicial analyses and from theperspective of efficiency and avoiding risk, this dessertation then come up with newthoughts to the next interest rate marketization reform and concrete ideas andsuggestions onopening up the deposit interst rate cap. Through theortical analysis andresearch, this dessertation come to these conclusions: First of all, our country needs totake incremental rather than radical method to complete the reform of interst ratemarketization, because the latter is easy to cause outburst of reform contradictions.Second, the interst rate marketization in China is on a key point and there areproblems of double-track financing channels led by the deposit interest rate regulation.Third, in view of the interest rate risk that interst rate marketization msy bring, thisdessertation puts forward effective suggestions on the marketization, that is throughshort-term, medium-term and long-term to find duitable benchmark interest rate forreference and make make inrerest rate floating space to make interst rate both reflectsmarket information and control risks.