Research On The Impact Of Interest Rate Marketization On Commercial Bank Risk-taking

In the 1970 s,the American economists McKinnon and Shaw proposed the theory of financial deepening,thought that due to the government's excessive regulation,financial market interest rates were artificially low,thus economic development was subdued.They think the government should decontrol the market,and let it independently pricing,take advantage of the efficiency of the market,so that realizing the economic growth.In the 1980 s,many countries such as The United States,South Korea,Japan,Chile,Argentina began to carried out the interest rate marketization reform.Despite it led to a lot of banks fail,it played an obvious role in promoting the banks transformation in the intermediary services,strengthening the banks competition,prompting banks to improve risk management,enhancing their competitiveness.Since 1996 China began to explore the reform of the interest rate marketization,and to 2015,have let go of the limit of loan interest rate,and loosened the deposit interest rate floating range,it poses new challenges to the risk management of banks.So,the paper studies the impact of the interest rate marketization on bank's risk-taking based on capital regulatory which has practical and theoretical value.The paper is divided into five chapters.First based on the review of the existing literature research,the introduction part puts forward the research idea and the technology roadmap of the paper.Secondly,the paper analyzes the effect of interest rate marketization on bank risk-taking theoretically and practically.Defining the interest rate marketization and the bank risk-taking,and combined with financial deepening theory,analyzing the necessity of interest rate marketization and the interest rate marketization reform practice in China,then analyzing the approach that the interest rate marketization influences on bank risk-taking,that is deposit interest rates rise,interest spreads of deposit and loan decrease,and interest rate volatility spreads,which affecting the bank's risk-taking.Then,the paper builds a mathematical model analyzing the effects of interest rate marketization on bank risk-taking and proposes three theoretical hypotheses.Then,the paper selects 42 commercial bank data from 2006 to 2015 for empirical test based on system-GMM model.The empirical results show that interest rate marketization has a positive correlation relationship with the bank risk-taking.In addition,with the improvement of capital adequacy ratio level and degree of competition,the affectionwill be magnified.Finally,the paper puts forward policy suggestions that the commercial banks should change mode of operation,speed up product innovation,improve the interest rate pricing mechanism,and regulators should perfect the comprehensive supervision system based on the core of capital regulatory.The innovation of the paper mainly has two aspects: First,based on regulatory capital perspective,studying the effect of interest rate marketization on bank risk-taking.Examining the impact of interest rate marketization on commercial banks risk-taking empirically,and introducing cross variables of capital adequacy ratio with the interest rate marketization,and degree of competition in the market with the interest rate marketization,and observing the effect.Second,using the mathematical model analyzes the effect of the lending and deposit interest rate spread decrease on bank risk-taking under capital constraint regulatory.Building bank risk-taking optimal selection model under interest rate marketization on the bases of Feyzioglu's model(2009),joining the bank monitoring efforts,and considering capital constraint regulatory factor,using mathematical model to analyze the affection of interest rate marketization on bank risk-taking,and proposing three theoretical hypotheses then doing empirical test.