The Analysis Of Impacts Of The Market-Orientalization Of Interest Rates On Bank A

ABSTRACT:Since1993, China’s progressive interest rates reform has been carried out for2full decades, during which the central bank has basically followed the following principle,i.e." Foreign Currency First, Domestic Currency Second; Loans First,Deposit Second; Large And Long-Term First,Small And Short-Term Second" and has achieved significant initial results.Over the past two years, China’s Market-Orientalization of Interest Rates process has accelerated remarkably, while interest rates reform has entered an overall speeding stage. As China’s main players in the financial market, commercial banks will inevitably face a series of shocks from interest rate reform, which is significant for the transformation and development of the commercial banks if the process is proper analyzed and summarized with full investigation and responding proposals. This paper, titled "The Analysis of Impacts of the Market-Orientalization of Interest Rates on Bank A", offers in-depth analysis of the impact of interest rates marketization of China’s commercial banks, focusing mainly upon the commercial banks’real impacts at the operational level, and provides proposals to accelerate business restructure and enhance its pricing level.Firstly, from the theoretical level, the paper gives a thorough overview and summary of the interest rate markets and the relevant literature, including both foreign theoretical summary and domestic commentary of research; after the comparative analysis of interest rates the reform of the United States and South Korea, this paper founds that the impact of interest rates marketization of the commercial banks has reflected mostly in the operational level.As such, the Banks should promptly rethink their business restructuring and transformation, seeking for new profit model; Then this paper discusses the conditions and possible paths of the market-oriented rates reforms. And then separately analysis from different points of view in terms of deposits, wealth management services, asset business,etc., so to come up with a comprehensive and in-depth analysis of China’s commercial banks by the impact of interest rates reform. On this basis, focusing on the bank A as an example, this paper makes a detailed analysis of the impact and influence that bank A has faced under the background of market-oriented interest rates reforms and has proposed with reform recommendations for commercial Bank to deal with interest rates reforms, including the repositioning strategies, the business transformation,efforts to promote and accelerate business restructuring, and still other2aspects in order to develop some inspirations for Bank A and other commercial banks.As previous studies have concentrated on the analysis of macroeconomic situation in a region or a country, there’s a shortage for the case studies at banks level. In this Study, with the characteristics of implementing case studies of the head office and branches respectively, this paper has based on actual data and survey, and has discussed in detail on the impacts of interest rate reform. Moreover, this study puts forward relevant responding suggestions, draws conclusions and Implications that is considerably practical for other commercial banks.