A Study Of The Modes Of Interest Rate Regulation In The Process Of China's Market-Oriented Reform Of Interest Rate

Our country's market-oriented reform of interest rate has not achieved substantial breakthrough, though it has been carried out for quiet long time. With the lending and deposit interest rates of the state-owned commercial banks which remain in the dominant position of the whole banks still being under the government's restrict control, no risk pricing mechanism can come into being in the financial market, nor does benchmark interest rate which can has crucial influence on the changes of the general interest rate. This has counteracted China's reform of economic system and affected the economic development. Therefore, we should intensify the market-oriented reform of interest rate, so how to overcome the various coming risks of the reform has become the critical matter. This paper, on the basis of the interest rate regulation, is to be devoted to studying how to realize the control of its risks through choosing and optimizing the modes of interest rate regulations in the process of the market-oriented reform of interest rate.With the development of the theory of interest rate rule, many countries in the world have chosen and implemented interest rate as the intermediate target of their monetary policy so as to further confirm the important position of interest rate as one of the tools of monetary policy. And this paper will firstly give an analysis of the connotations of the market-oriented reform of interest rate and interest rate regulation respectively and accordingly define their mutual relationship, namely, there should be no deny of the interest rate regulation's important function on implementing the market-oriented reform of interest rate, and with better interest rate regulation, the market-oriented reform of interest rate will be more smooth and successful. Secondly, having a brief review of the practice of interest rate regulation in China, it will analyze the definition of financial regulation mode and that of the interest rate regulation mode as well. Then this paper is mainly devoted to having a comparative analysis of the American type and "interest rate corridor" regulation modes with respect to their function mechanism, character as well as the restrict qualifications, and also employ various kinds of analysis methods including the qualitative analysis...