Research On Hebei Bank Business Transformation Under Interest Rate Liberalization

Since 2015,China’s financial market has entered the stage of complete interest rate liberalization.In 2018,the Central Bank declared they will integrate “dual track” into “one track” to further promote interest rate liberalization.With the gradual deepening of the process of interest rate liberalization,as the traditional interest margin shrinks down,the commercial banks’ operating mode,which is mainly based on the interest income,has been impacted,and as an important financial subject serving the local economy,the city commercial banks have began their business transformation under the pressure of market-oriented interest rate and intensified competition.The paper takes the business transformation of Hebei Bank under the impact of interest rate liberalization as an example,using case analysis,data analysis and comparative analysis,and takes the development background,the characteristics and the opportunity and impact of interest rate liberalization of Hebei Bank for research.Then it is concluded that Hebei Bank needs to take business transformation in the process of interest rate liberalization.Then,from the asset-liability business and intermediate business,with Hebei Bank’s annual report data in the past five years,it makes an in-depth analysis of the current situation of Hebei Bank’s business transformation.It is found that the problems existing in the process of business transformation of Hebei Bank under the background of interest rate liberalization mainly include the following three problems: The development characteristics of deposit business are not obvious,the structure of loan business is unbalanced,and the types of intermediary business are thin.Then,with the help of the data from the Beijing Bank’s annual reports in recent five years,it clearly and directly shows the effectiveness of the of Beijing Bank business transformation in the process of dealing with the impact of interest rate liberalization.Mainly including the development of small and medium-sized business,non-interest income increase in the proportion and the unique retail business.Finally,in the light of the problemsexisting in the current situation of the development of Hebei Bank and in comparison with the practical experience of Beijing Bank,the paper proposes that: from the aspect of liability business,strengthen the active liability customer management,reduce the cost and broaden the channel of active liability;from the aspect of asset business,adjust the structure of clients,expand the business of non-credit assets,and make clear its position to develop small-sized and medium-sized finance;from the aspect of intermediary business,improve the level of business differentiation.As the first batch of City Commercial Banks in China and the first City Commercial Bank in Hebei Province,Hebei Bank’s analysis of its business transformation is of certain significance.The suggestions put forward could strengthen and optimize Hebei Bank’s business,which enriches the research in related fields,and at the same time,it is hoped to provide reference for the development of other city commercial banks.