Research On The Influence Of Interest Rate Liberalization On Commercial Banks Of China

China opened the beginning of the Interest Rate Liberalization reform in 1996 and made remarkable progress in the past 20 years. On October 24, 2015, the central bank lowered the benchmark interest rate for RMB deposits,and cancelled the cap on floating deposit rates,including commercial Banks and rural cooperative financial institutions. At this point, the interest rate on deposit and lending is fully liberalized, which marks the end of the market reform of interest rates in our country. Faced with such changes, commercial banks, as an important part of the financial system, face both opportunities and challenges. Therefore, it is necessary to research in recent years, the Interest Rate Liberalization reform, the stable operation of commercial banks in China has very important theory value and practical significance.The Interest Rate Liberalization has brought favorable and unfavorable effects on China’s commercial banks, this paper attempts to analyze this. The classical theory of the influence of interest rate liberalization on commercial banks is supported, carding the path of Interest Rate Liberalization reform and analysis the reality development situation, combined with the actual data of so me listed commercial banks and analyzed the challenges and opportunities.In the measurement section, this article takes the interest rate risk as the angle of view,take the overnight Shibor yield rate as the object of study, employ the GARCH model and the VaR model to measure the interest rate risk of commercial banks,obtain the VaR statistic and fluctuation graph of the unit borrowing funds. Finally, it is concluded that the interbank yield series is more influenced by the outside world, and this effect has persistent conclusions, at the same time, it also proves that the frequent fluctuation of interest rate will increase the interest rate risk of commercial banks.After analyzing the challenge and opportunity of Interest Rate Liberalization brings to the country commercial bank system, this paper concludes the effect on the Interest Rate Liberalization brings to the commercial Banks abroad experience and then puts forward the relevant policy recommendations, so that we can provide more reference.