The Influence Of Interest Rate Marketization On Our Country Commercial Bank Competitiveness

Inspired by foreign financial deepening theory and financial constraint theory, driven by economic and financial development and market innovation, along wth the accelerating process of financial liberalization and financial deepening, in 1993, our country put forward to establish market interest rate management system based on the market capital supply and demand, according to the core of the central bank benchmark interest rate for regulation,decided to a variety of interest rates by the market capital supply and demand, fully carrying out interest rate marketization reform.In the twenty years of exploration,according to the economic system and macro financial conditions,our country always take reasonable interest rate control policy to reaize interest rate marketization step by step.This is mainly follows the McKinnon’s financial constraint theory。Our country choose policy intervention as a transitional tool for financial marketization reform.Through the external policy regulation we can maintain financial market order and promote rate from full control part to control step by step towards full liberalization.As the money market, bond market, foreign currency deposit and lending market, insurance companies large agreement deposits and RMB loans market are implementing interest rate marketization,interest rate marketization reform has entered a crucial stage in our country.From 2015,the central bank adjusted the renminbi lending and deposit rates four times in a row on March 1,May 11,August 26 and June 28 with less than three months’time lag.Frequent interest adjustment indicates the distance to complete interest rate marketization reform in our country is only one step. Interest rate marketization reform in our country has experienced 10 years in terms of macro financial environment and economic system.With interest rate marketization reform continuously deepening,commercial banks will have a series of affects such as the great impact on the traditional profit model depend on the interest income,increasing capital pressure,risk management level improvement and ascending financial innovation ability.In this article,chapter one first states research background.We briefly explain evolution process of researches by economic scholars on interest rate marketization and development present situation of interest rate marketization.This part also analyzes purpose and significance of this study,nearly introduces why study the influence of the interest rate marketization on commercial banks competitiveness and this study’s practical application.At the same time,this part briefly introduces the definition of interest rate marketization and commercial bank competitiveness and analyzes the innovations and shortcomings of the research.Chapter two reviews literatures by scholars at home and abroad on interest rate marketization, commercial bank competitiveness and the influence of the former to the latter.Chapter three mainly comb the important matters on interest rate marketization reform refer to the people’s bank of China annual report to form the overall plan of interest rate marketization reform.According to the actual interest rate,interest rate decisions way and interest rate floating range and extent,we use the method of subjective assignment to measure interest rate marketization level,then through the simple average method to calculate the interest rate marketization index.Chapter four chooses the weighted average return on equity,non-performing loan ratio,capital adequacy ratio, debt-to-assets ratio and loan-to-deposit ratios of 12 commercial banks from 2004 to 2014 to measure profitability,the degree of risk, risk resistance ability, asset quality and the asset allocation ability.Indirectly we obtain comprehensive evaluation of commercial Banks competitiveness.This article use the above indicators as explained variables,construct interest rate marketization index as a explanatory variable,choose GDP and inflation rate as control variables.The fixed effects empirical regression results tell us that accelerating interest rate marketization process can reduce profitability, non-performing loan ratio and liquidity,at the same time improve capital adequacy ratio,thus reduce the competitiveness of commercial banks as a whole.In chapter five we choose bank A as the research object,using the SWOT analysis to analyze the operation strategy and countermeasure on responsing the interest rate marketization.In chapter six,the part shows that through strengthening the construction and innovation of channels, strengthening the customer development and maintenance, improving product competitiveness and enhancing the level of risk management bank A can lay solid the foundation of operation and development and to enhance core competitiveness.