The Impact Of Interest Rate Liberalization On Commercial Banks In China

China's interest rate market has experienced since 2015,China's money market has a sound and flexible coexistence characteristics,with the help of the way to reduce the cost of the real economy continued to grow.Following the high frequency cut in 2015,the people's Bank of China again announced that since October 24,2015,down financial institutions RMB loans and deposits benchmark interest rate,in order to further reduce the cost of social financing.And the commercial banks and rural cooperative financial institutions are no longer set deposit rates,and to improve the market interest rate formation mechanism and regulation,strengthen the central bank interest rate system of regulation and supervision,improve the efficiency of monetary policy transmission.This shows that in the "double down" at the same time,the central bank completely liberalized the deposit interest rate,deposit interest rate liberalization process is close to completion.At the same time,it also marks the process of China's interest rate market has been completed in the final stage,made a qualitative leap.Interest rate market to promote,will promote the liberalization of the market competition,the bank is proud of lying to eat interest era will end,which for commercial banks,the challenge is unprecedented huge.Compared with the large state-owned banks,commercial existence of the distribution of the network is sparse,the development of intermediary business is insufficient,the traditional business competition ability falls,the fund transfer internal pricing ability and interest rate risk management ability is weak.The development of interest rate liberalization,commercial banks will undoubtedly to the weak position in the competition between banks,commercial banks than large state-owned banks as well as strong background,local city commercial banks down to earth.Increase the bargaining power of enterprises,in this brutal competition in the industry,is undoubtedly a bearing to the commercial banks to combat,not only to reduce the profit margin,the risk of credit business will be greatly enhanced.Therefore,commercial banks should be steady change,in promoting the smooth business development at the same time,we should change the original business strategy,vigorously develop intermediary business,will be the main source of income from the traditional business out of debt.Change the original risk control management process,increase the intensity of talent training,etc..This paper mainly focuses on the following aspects: the impact of interest rateliberalization on China's commercial banks.First,through the definition of interest rate and interest rate liberalization,the process of interest rate liberalization analysis the background of commercial bank interest rate market.Second,with the help of China Bank X branch of the empirical analysis of the specific impact of the data.Third,the analysis of the impact of the interest rate market to China's commercial banks to deal with the impact of the strategy.The analysis results show that the interest rate market is mainly in the following aspects: the influence on commercial bank liabilities from the end,with the advance of interest rate market,the net debt control costs rise,with a narrowing of the difference of city commercial banks take the initiative to adjust the debt structure,the proportion of deposits in debt fell from the asset side view;and in the process of liberalization of interest rates,the city commercial banks to adjust the asset structure to obtain short-term capital gains,accelerate the turnover of assets to offset the decline in traditional net spreads,is accompanied with the decline in the proportion of credit assets;from the revenue side,net profit margin of the interest rate market has brought the city firm profitability fell significantly.A marked decline in the most direct manifestation is the net interest income growth rate,net interest income to compensate for the decline in the profit gap left,the city firm will actively expand non interest income channels,income share will be increased.In the face of these effects is proposed in this paper,the commercial bank should strengthen the comprehensive management of internal and external,in the direction of the main business firm strategic shift,enhanced the development of intermediary business,make the operating characteristics to determine marketing objectives,a clear direction of extension off.And from the strengthening of fine management,cost management and risk control,to enhance the talent pool and business innovation and other aspects of the commercial banks in the interest rate market after the completion of the coping strategies.