Research On The Factors Affecting The Interest Rate Of Interbank Deposit Certificate

Negotiable certificate of deposit(NCD),as a book-entry certificate of time deposit issued in the national interbank market,has gradually become a significant money market instrument in recent years.As of the end of 2021,the outstanding of NCD reached nearly 14 trillion yuan,accounting for more than 12% of the whole bonds in the interbank market.As one of the main NCD issuers,P Bank has been representative in the market for a long time.Clarifying the influencing factors of its NCD issuance interest rates will not only conduce to optimizing its liability management and operating costs reduction,but also bringing many positive influences on the domestic NCD market.Starting from the relevant literature and theories about the issuance interest rates of NCD,the thesis extracted the main influencing factors to analyze their influences on P Bank’s NCD issuance interest rates.The thesis selected the issuance interest rates of 3-month and 1-year NCDs issued by P Bank between 2019 and 2021 as the dependent variables.Some external influencing factors such as Shanghai Interbank Offered Rate(Shibor)of the same terms,7-day interbank pledge-style repo rate(R007),the year-on-year growth difference between aggregate financing to the real economy(AFRE)and broad money supply(M2),CSI 300 Index,together with some internal influencing factors such as loan-deposit ratio(LDR)and capital adequacy ratio(CAR)of P Bank were selected as independent variables,and then established the multiple linear regression models to conduct empirical analysis respectively.The final results showed that Shibor,R007,CSI 300 Index and LDR had significant positive influence on the issuance interest rates of 3-month and 1-year NCDs issued by P Bank,while CAR had significant negative influence on them.However,the year-on-year growth difference between AFRE and M2 only had significant positive influence on the issuance interest rates of 1-year NCDs issued by P Bank while had little influence on 3-month variety.Based on the empirical results,this thesis put forward some feasible suggestions for the issuance interest rates of NCDs issued by P Bank from two perspectives.First of them is paying close attention to external circumstances,the other is enhancing its core competitiveness.