Interest Rate Market And Risk Control

The market determination of interest rates is one of the vital steps for our financial industry to be market determined, the basic symbol of our economic system's changing from the formal planned to the advanced market economic system as well as the important topic that we should pay an urgent and close attention after China's access into WTO. This paper firstly analyses the abuse of present interest rate system together with the inevitability and possibility of the reform. On the basis of the study about the success and failure of other countries, it puts forward an active and evolutionary way to push on the reform in accordance with our national conditions. And then it points out some risks that are possibly to happen as the consequence of the reform. Finally, it reaches a conclusion: in order to forestall the risks and guarantee the reform under control with the national financial safety and economic development in addition, we have the full necessity to take strict precautions and perfect the supervision system in operation. We should put forward a feasible supervision measures that can effectually guard against and eliminate the possible financial risks caused by the reform.