Research On The Impact Of Interest Rate Marketization On The Investment Banking Business Of The Bank Of Nanjing And Its Countermeasures

Since the Reform and Opening-Up,China has stuck to take marketization as the fundamental direction and constantly deepened the reform of financial system.Interest rate liberalization is an important measure of China’s reform of financial system,as well as the only way for China’s financial market to become mature.Interest rate liberalization has brought about huge impact and development opportunities for eommercial banks,especially the investment banking business of city commercial banks.As the leader of city commercial banks,Bank of Nanjing is confronted with the coexistence of opportunities and threats in such aspects as operation management,business structure and risk management under the circumstances of interest rate liberalization.Interest rate liberalization directly results in the narrowing of deposit-lending interest rate spreads and causes a direct impact on the profitability of investment banks.The reduction of profitability weakens the ability of investment banks to resist risks and increases operational risks,especially interest rate risk,of investment banks.This paper studies the effects of interest rate liberalization on the investment banking business of Bank of Nanjing,a representative of Chinese city commercial banks.The study of interest rate liberalization is of important practical significance for the discrimination and analysis of problems confronted by Chinese commercial banks in transition,especially the transition of investment banking business of Chinese commercial banks;the study is also of important theoretical significance for Bank of Nanjing to seek for new sources of business growth under the circumstances of interest rate liberalization.Based on the analysis of the progress and experience of domestic and overseas interest rate liberalization reform and the exploration of the conditions and influence indexes of interest rate liberalization reform,this paper fully analyzes the impacts and influences confronted by the investment banking business of Bank of Nanjing under the circumstances of interest rate liberalization and the strengths,weaknesses,opportunities,and threats of the investment banking business of Bank of Nanjing to provide suggestions on how to cope with interest rate liberalization and corresponding countermeasures for the investment banking business of Bank of Nanjing.First of all,the research background and goal,research ideas and methodology and the main content and framework of this paper is introduced.Through the expounding of basic theories of interest rate liberalization and the introduction of the progress of interest rate liberalization in the USA,the effects of interest rate liberalization on Chinese investment banking business are put forward in Chapter Two.Chapter Three analyzes the characteristics of the investment banking business of Bank of Nanjing and further expounds the impacts and possible effects of interest rate liberalization on the operation management of the investment banking business of Bank of Nanjing.Chapter Four utilizes SWOT analysis to fully analyze the strengths and weaknesses of the investment banking business of Bank of Nanjing to find out the development path of the investment banking business of Bank of Nanjing under the circumstances of interest rate liberalization.Chapter Five provides some key suggestions for the investment banking business of Bank of Nanjing to cope with interest rate liberalization reform.