The Impact Of Market Reform On The Financial Intermediary Function Of Banks

In the 1970 s,many countries push forward the market reform based on the "Financial Repression theory" and "Financial Deepening theory".In 1993,the Chinese government put forward the interest rate marketization reform and China has gradually established a market-oriented financial mechanism.It is an important measure for China,and it's meaningful to study the relationship between the market reform and the financial intermediary function of banks.On the basis of previous studies,this paper studies the marketization process and measures the degree of financial marketization in China.The results indicate that the marketization reform in China has been completed,including interest rate marketization,financial supervision,market access for banks and so on.Then,this paper examines the relationship between abnormal rate of return and marketization.The results show that the cross-term between financial marketization and information asymmetry has a significant negative correlation with the abnormal rate.It means that with the advancement of financial marketization,the information asymmetry has weakened,and the financial intermediation function of banks has been weakened.