Assets Structure Optimization Study On China’s Commercial Banks Against The Interest Rate Deregulation Background

China has implemented strict financial controls for a long time.Financial institutions are not allowed to carry out mixed operations and their operating profits are mainly from the interest spread between deposits and loans.These traditions,however,will see significant changes with the reform of the interest rate market,which in turn will affect the profitability and bring pricing challenges for commercial banks.This paper first reviews related theories and agrees that the interest rate deregulation can further enhance the flexibility of interest rate management for commercial banks in China,leading to improved funds allocation and efficiency.In addition,a more efficient and positive relationship between capital supply and demand can optimize the risk management of commercial banks,which will fundamentally solve the problem of social funds misallocation that has long constrained the growth of commercial banks in China.Then,this paper analyzes the asset structures of commercial banks in China,and believes that interest rate deregulation will fundamentally change the financial environment in which commercial banks operate.This will be reflected in the increase of interest rates and the narrowing spreads.Meanwhile,interest rate deregulation will increase the interest rate risk,credit risk and operational risk for commercial banks,which will lead to increased difficulties in risk management.Commercial banks should speed up the innovation of financial products,adjust the income structure,and change the risk management model to cope with the inevitable challenges.Then,empirical studies are conducted to study the effects of interest rate deregulation on the banks’ asset structure.Finally,the paper puts forward asset structure optimization proposals for commercial banks in China,against an interest rate deregulation background.The writer here believes that commercial banks in China will have to speed up the development of intermediary businesses to change their traditionally sole profit model.At the same time,in order to achieve successful strategic transformation,it is necessary to secure solid income of intermediary business.Adhere to the direction of strategic planning,we also need to actively establish an appropriate incentive mechanism,and through the effective integration of client resources,to achieve product development and innovation.At the same time,commercial banks should actively carry out related propaganda and trainings to improve the awareness of intermediary business among employees at all levels and to enhance the strategic position of intermediary business in the group’s growth planning framework.