A Study On The Impact Of Deposit Rate Marketization On China 's Commercial Banks

With the developing of economic market and the financial globalization,the pace of reform of China’s interest rate market is becoming faster and faster.In July 2013,China’s loan interest was fully liberalized,marked the reform of interest rate market in China has entered the most critical phase, the reform of deposit interest rate market become more important. For China’s commercial banks, the deposit interest rate liberalization is a double-edged sword, which can bring new development opportunities to commercial banks and at the same time,make commercial banks face unknown challenges.Deposit interest rates liberalization can provide a relatively fair competitive environment to commercial banks which can optimize the allocation of resources,encourage commercial banks set their own price,make innovation and optimize the mode of operation management.But at the same time,release the deposit interest rate will cause the competition more and more fierce among commercial banks,the spread of deposit and loan will narrowed,the profit get decline,and the difficulty of rate risk and asset liability management will increase.For this paper,we fristly analyzed the theories relate on the interest rate marketization for deposit.On this basis,a detailed study of positive and negative influence of China’s commercial banks by relaxing controls on deposit interest rate has been made. At the same time, this paper uses interest rate sensitive gap analysis and stress testing model to forecast the fluctuation of interest rate risk and revenue risk which may bring to the commercial banks.Finally,put forward the corresponding measures to based on the international experience.The interest rate marketization for deposit has both advantages and disadvantages to the development of China’s commercial banks.Commercial banks should take the initiative to optimize businessthe structure,strengthen the ability of risk management, focus on the introduction and cultivation of relevant talents.Countries should improve laws and regulations on financial market,strengthen financial supervision and establish explicit insurance system, to minimum the risk of China’s commercial banks.