Research On The Business Development Of Bank Of Lanzhou Under The Background Of The Interest Rate Liberalization

Since 1970 th,economic integration and the financial liberalization have improved the realize of interest rate liberalization and promoted the development of world's economy.The reform for the interest rate liberalization in China has already finished,making the deposit and loan rates rise and fall under the influence of market and the spread keep shrinking,and making it hard for the traditional operating pattern of capital consumption to develop in commercial banks.In consequence,the business transformation in commercial banks is imperative.It is the highest goal for the commercial banks to build the business structure that promotes the increase of profitability and it is the foundation to make the commercial banks run continuously and steadily,meanwhile it boosts the competitiveness of commercial banks.Since the foundation in 1997,Bank of Lanzhou has made a great contribution to the economic development of Gansu and the development of small enterprise,and brought good economical and social benefits.With the release of the control of interest rates,the deposit and loan interests fluctuate according to the changes of the market,which will bring a series of effects including interest income,risk management,profitability and so on on Bank of Lanzhou,which has been developing on high spreads,scale expansion and the supports from the government.This paper analyzes the annual financial statements published by Lanzhou Bank,and studies the development of traditional business of Lanzhou Bank under the background of interest rate market,and the change of risk and the change of profitability.The analysis shows that Lanzhou Bank in the interest rate market changes,the risk gradually increased,the traditional business profitability is weakening.At the end of this paper,the paper puts forward the development proposal of Lanzhou Bank to deal with the marketization of interest rate.It is to actively build intensive business model,explore and develop wealth management business,"refinement" of business and service and strengthen risk control.