Model Of Liberalization Of Interest Rates And Relative Requirements On Management Accounting In Commercial Banks

China now is at the turning point from the planned economy to the market econonmy, and has entered WTO. Liberalization of interest rates is the base of currencies policies made by the central bank as well as important contents of the financial system reform. Commercial banks are the most important participators of this reform. The first part of this thesis introduced meanings of liberalization of interest rates as well as relative theories. By analyzing various advantageous and disadvantageous economic conditions, the thesis holds the opinion that it's not proper to practice complete liberalization of interest rates in China at present. On the contrary, China should practice liberalization of interest in a gradual way. Then, the thesis analyses the process, effect, and plights of the current liberalization measures. In the second part of this paper, according to the reality that the management accounting can not meet the needs of the liberalization of interest rates, the thesis puts forward the opinion that commercial banks in China should strengthen their management accounting work, especially the cost management and lending pricing, and introduces the appliance of Activity-based Accounting, as well as three lending pricing models currently used in western commercial banking. Finally there is a detailed case study of lending pricing.