The Strategy For Small And Medium-sized Commercial Banks Towards Interest Rate Liberalization

Nowadays,with Chinese economic growth being slowed down and the "new normal"stage of present economy,commercial banks are facing increasing operating pressure.The marketization of interest rate is a significant reform of Chinese financial market,which contains both the opportunities as well as risks for the banks.At present,thepace of such reform has accelerated,and domestic commercial banks are lack of sufficient knowledge of interest rate risk.As a result,the deficient capability of enduring such risks makes those small and medium-sized commercial banks exposed to the high-level risks.Therefore,the major problem faced by these banks is how to choose appropriate management tools and strategies to deal with the risks and improve the management benefits.Overall,the thesis is composed of three parts.To begin with,it introduces the background,purpose and significance of the study;Then the part also reviews the theoretical development of the marketization of interest rate,analyzing the core point by using the "interest rate risk measurement model".In the second part,the article illustrates the challenges and opportunities under the market-oriented interest rate environment,which contains the interest rate risks,liquidity risks and credit risks faced by small and medium-sized commercial banks.After that,it qualitatively analyzes the challenges and opportunities for these banks in the aspects of expanding the business autonomy,promoting the financial innovation,optimizing the customer structure and so forth.The third part of this article mainly analyzes current situation of China Minsheng Bank(CMB),which involves the scale of balance sheet,earning power,assets quality and business structure in terms of operating management;When it comes to the interest-rate management,China Minsheng Bank sets about accommodating itself to the liberalization of interest rates in four aspects:supervision index,development patterns and risk management respectively.It reflects the real operating situations of Minsheng Bank by using the actual business activities,financial data and certain key indicators,such as net interest rate,provision rate,structure of assets and liabilities,the term structure of interest rates and yield rate.In the end of this part,it evaluates the actual operating pressures on small and medium-sized commercial banks caused by the liberalization of interest rates,and analyzes the specific circumstances and causes through economic operation data and survey materials.In the last section of this paper,it illustrates how to cope with the liberalization of interest rates,to choose optimum strategy and optimize business for Minsheng Bank,in firm and operation level.And then it describes the strategy used by Minsheng Bank,analyzes its matching degree.Finally,the article assesses the consistency between the company's internal resources,business and the organization system,the adaptability to external environments,and the feasibility of the strategy.And for the last aspect,the paper evaluates the effect of certain policies and puts forward with optimization and improvement measures.Under the overall background of financial reform and interest rates liberalization,development is still a priority.As the first privately-owned bank in the real sense,the strategy and experience of Minsheng Bank is of revealing and referential significance for the sustainable development of small and medium-sized commercial banks.The paper combines the market-oriented reform of interest rates and the practicalinterest-rate management of Minsheng Bank,which makes the article pertinent and well-founded.