The Study Of The Competition Pattern Of Commercial Banks Under The Background Of Interest Rate Liberalization

Based on the completion of interest rate liberalization in China in 2015,this paper studies and probes into the changes of competition pattern between commercial banks in China under the background.Through the study of Mckinnon and Shaw's financial repression and financial deepening theory and the connotation of Marx's interest rate theory,and other domestic and foreign scholars for the interest rate liberalization and its impact on the banking sector of the literature review,and combined with the current status of commercial bank under the background of interest rate liberalization in our country,construct the research framework of this article.By observing the interest rate liberalization reform in other economies,the successful path of interest rate liberalization reform is obtained :(1)stable and good macroeconomic environment;(2)perfect financial market and laws and regulations;(3)adopting a gradual approach to reform.The process of interest rate liberalization in China and the current situation of commercial banks in China are described in detail.Based on the data of China's 14 largest Banks,which are defined by the People's Bank of China.This paper uses the PR model to measure the industry competition in China in the past decade.It is concluded that the competition pattern of China's commercial banks has been monopolized in the past ten years,and the competition degree has become increasingly fierce.Finally,through the study of the relationship between industry competition degree,industry concentration and interest rate liberalization index,the co-integration test is used to conclude that there is a long-term equilibrium relationship between them.In addition,through the VEC(vector error correction model),the short-term relationship is analyzed,and the effect of the policy on the short term is limited by the impulse response and variance decomposition.Based on the above conclusions,this paper proposes the following Suggestions:(1)to adhere to the Marx's interest rate theory as the basic theory;(2)focus on the long-term effect of policies.Suggestions for commercial Banks :(1)improve business capacity and expand diversified income channels;(2)improve management ability and pay attention to risk control.