A Study On The Impact Of Interest Rate Marketization On China 's Financial Operation

With the further expansion of RMB deposit interest rate cap, the market-based reform of interest rates is only one step away from success. The study on the impact of the interest rate liberalization on China’s financial operations and proposing appropriate countermeasures do great practical significance.China’s financial system is the bank-based. This thesis illustrates the opportunities and challenges to commercial banks brought by the interest rate liberalization. In addition to commercial banks, as indirect financing market, capital market is important in the financial operation. Despite interest rate liberalization offers stages for the capital market on optimizing the allocation of resources, it has to alert the negative effects to the capital market brought by the interest rate liberalization. As one vital subject of the finical market, the government needs to assist in the process of interest rate liberalization by legislation and strengthening the financial supervision, not indulgence. Through the study on the successful reforms of the US, Japan and India in the interest rate liberalization, China’s financial market subjects can obtain experience and lessons, and be more mature in the interest rate market-oriented reforms.