Consideration To Interest Rate Liberalization For Commercial Banks

Interest rate liberalization is the key to realize economy and finance liberalization.The reform of the interest rate liberalization has become the most important one infinancial system reforms. Interest rate liberalization plays an important role ininsuring the effective allocating of financial resources, avoiding the financial risk,realizing the internal-external equilibrium and promoting the economic growth.The paper carries out a detailed study about the meaning of interest rate liberalizationand the necessity of the reform of Chinese interest rate liberation. Then it discussesthe impact of interest rate liberation to the commercial banks, its aim is to analyze itscounter measures for Chinese commercial banks. It points out the tactics which thestate-owned commercial banks should take in the competitive environment, such as:remolding commercial banks of China in line with joint stock system, developingintermediate business and derivative financial instruments,fostering the establishmentof risk management system of interest rate,increasing the quality of commercialbanks and strengthening composite competition capacity .