The Impact Of Interest Rate Liberalization On Commercial Banks Of China And The Countermeasure Study Of Commercial Banks Of China

It is generally accepted that the market-based reform of interest rate that started in 1996 has been a crucial reform of the current financial field in China. It has been over 10 years since our country started to explore the interest rate liberalization. At present, we are on the final sprint of overall liberalization. The reform of interest rate liberalization brought not only opportunities but also challenges to the abilities of management and adaptability for commercial banks. As a result, our commercial banks should correctly face the tendency and take certain actions in face of this trend. in order to keep their positions in the fierce competition. As a result, it is of great importance for the study of behaviors of commercial banks in relation to the market-based reform of interest rate.In the late 2006, the protection for the China banks has expired. The uncompetitive banks will be chased out from the world stage. The majority countries have already implemented interest rate liberalization in the overseas financial market. So we should speed up the pace of interest rate liberalization, with the goal of make our commercial banks be competitive. As a result, our commercial banking industry become more mature and connects with international industry trail. Compared with foreign banks, the control of interest rate risk still paused in the initial page in our country. In this sense, with the aim to improve the competitiveness of China commercial banks and adapt the fierce competition from foreign banks. Then the paper has elaborated in detail the opportunities and challenges of our commercial banks under the condition of the interest rate liberalization. It also provides some counter-measures for the commercial banks in the paper, with the expectation to be useful.This paper mainly carries on the elaboration through the theoretical analysis method. I use literature methodology, logical law, induction, compared with analysis method and content methodology. Firstly, it introduced the definition of interest rate liberalization, the necessity of the reform of Chinese interest rate liberalization and the process of Chinese interest rate liberalization. Secondly, it introduced the international partial national interest rate marketability reform. It summarized some suggestion that is of meaning to the reform of Chinese interest rate liberalization. Thirdly, it illuminated the opportunities and challenges that our commercial banks will meet under the reforming surroundings. In the last, it was mainly concerned with solutions such as: strengthen our commercial bank's service structure adjustment, fostering the establishment of risk management system of interest rate, improve the ability of fixing the price of financial product, furthering reform of banking industry and so on.