The Impact Of Interest Rate Marketization On Bank Wealth Management Products

Since 1996,China introduced the first policy of interest rate reform,and interest rate liberalization has become an important part of financial reform.In2015,China's interest rate marketization reform has been basically completed,but there are still many problems in China's interest rate marketization compared with other economically developed countries.The impact of China's not perfect interest rate liberalization on bank interest rate-related businesses is enormous.Since the Bank of China launched its wealth management business,the speed of bank wealth management business has leapt.At present,the wealth management business has developed into one of the most important businesses of the bank.The income from wealth management business accounts for a large proportion of the bank's operating income.Therefore,it is clear that the impact of interest rate liberalization on bank wealth management products and the pricing of bank wealth management products,so that commercial banks can adapt to the process of interest rate marketization.This paper first applies the financial deepening and financial suppression theory to study the interest rate marketization,and analyzes the process of China's interest rate marketization and the development of bank wealth management products.Then it studies the impact of interest rate marketization on bank wealth management products from three aspects: circulation and issue size,investment target products and pricing.The study of the impact of interest rate marketization on the pricing of wealth management products is based on astepwise regression method for empirical analysis.This paper selects the representative 20 listed banks' financial products within one year as the research sample,and divides the wealth management products according to different investment terms,which are divided into investment period of 3 months,3-6months and 6-12.Three groups in the month,and then an empirical analysis of the three groups.There are a total of seven variables involved in the empirical analysis.The weighted average of the expected maximum and minimum yields of a bank's wealth management products is the explanatory variable.Interpretative variables include gross national product(GDP),money supply,inflation rate,Shanghai interbank interest rate(Shibor),deposit interest rate,and loan interest rate.It is empirically concluded that the gross national product has no impact on the pricing of wealth management products,and the impact of inflation rate is small and almost negligible.Various interest rates have a greater impact.The interbank offered rate is positively correlated with the yield of bank wealth management products.When the interbank offered rate has an upward trend,the pricing of wealth management products invested in the money market can be appropriately increased.When the deposit interest rate has an upward trend,it is also possible to appropriately increase the pricing of wealth management products with longer maturities.In the context of interest rate marketization,by analyzing the impact of interest rates on the profitability of bank wealth management products,it is possible to help commercial banks design wealth management products and rationally price wealth management products,thereby increasing the profitability of commercial banks.Finally,through the dual analysis of qualitative and quantitative,this paper puts forward the following three suggestions from the perspective of the bank:first,strengthen the innovation ability of wealth management products and improve their competitiveness;second,improve the market pricing power of wealth management products;third According to the interest rate,the proportion of all types of bank wealth management products will be adjusted appropriately.