The Influence Of Interest Rate Liberalization To Commercial Banks’ Operating Activities

Interest rate liberalization is decided by supply and demand of interest rate operation mechanism on a certain point through the market and the law of value mechanism. It is the result of the law of value function. Market-oriented interest rate reflects the fairness of the market which truly reflects market supply and demand of funds, and can effectively restrain of financial institutions to enter and business barriers. The more important is that it can reduce the financing cost of the entire market, and thus reduce systemic risk. Therefore, the interest rate marketization reform can help to promote enterprise organization of benign competition, superior bad discard, optimize the industrial structure, improving the quality of enterprise organization. In 1996 our country start the market-based reform of interest rates though open the interbank market interest rate as the breakthrough point. According to analysis the practice of the foreign interest rate marketization, we can successfully implement that market-oriented interest rate requires financial institutions to provide major support, which is especially for the heaviest task of commercial Banks. Compared with the developed economies, our financial system is not perfect, and the economic foundation is weak. So the impact of the commercial Banks is opposite bigger. And they face the relatively larger risk on the road of reform. Therefore, in the process of market-oriented interest rate, according to our country’s financial system to study the influence on commercial Banks will have theory value and practical significance in reality.In this paper, we first comprehensive review of marketization of interest rate and its impact on the commercial Banks of the related literature at home and abroad. Then we analysis process and the current status of interest rate marketization in our country to describe the marketization of interest rate on Chinese commercial Banks and the influence on the daily business channels and mechanisms by combining with the commercial Banks of shareholding system reform. Then research the impact of practical analysis and summary of some developed economies overseas in the process of marketization of interest rate for commercial Banks, and combined with our country state of the economy and financial system, we puts forward the influence of interest rate marketization of listed commercial Banks in China. And then we can be obtained that the management risk of the commercial Banks faced is increasing, and its income also is under the influence of direct in the process of marketization of interest rate by comparing and analyzing before and after financial crisis on the impact of interest rate marketization on commercial banks. But the interest rate marketization also optimize the assets structure of commercial Banks, and enhance competitiveness optimization opportunities for improvements. Finally, this part provides the improvement opinion to the market-oriented interest rate reform deepening in China, through the analysis of the impact of interest rate marketization of commercial Banks, which provides policy advice to the further promote of interest rate liberalization and the commercial banks cope with the impact of interest rate liberalization, etc.