A Study On The Development Of Large - Scale Transferable Time Deposit Business In China 's Commercial Banks

Negotiable certificates of deposit is a new innovative financial tools. It’s originated in 1961, the United States wants to change in run on banks and economic depression with the help of negotiable certificates of deposit. In China, the first certificates of deposit was issued in 1986 by Bank Of Communications Co., Ltd, but suspended by Central Bank in 1997. Nowadays, certificates of deposit in 2015 again appears which means that the interest rate market will start to go to the final destination. In the interest of accelerating market-oriented reform process, certificates of deposit will help to open the deposit interest rate ceiling, and promote the development of interest rate marketization in China. Therefore, the restart of certificates of deposit will have a profound impact on the business model and the development strategy of China’s commercial banks. Because of its own characteristics, certificates of deposit will have some substitution effect of other financial products, to strengthen the capacity of commercial banks’ independent liability management, force reform and innovation in the banking sector.Based on the basic theory of negotiable certificates of deposit, the paper analyzes failure reasons that China’s commercial banks operate certificates of deposit business on the early stage and realistic significance of the restart of certificates of deposit. Then the paper introduces the development status of China’s commercial bank certificates of deposit and its influences. Next, the paper points out some obstacles about the developing of certificates of deposit. Finally, based on the reference of the advanced experience of foreign commercial banks, the paper puts forward a series of favorable suggestions on how to promote the development of China’s commercial bank negotiable certificates of deposit business.