A Study On The Operational Capability Of Grass - Roots Commercial Banks In The Process Of Interest Rate Marketization

Interest rate market is an important part of China’s current financial reform. With the deepening of market-oriented reform of interest rates, the opportunities and challenges facing the banking industry coexist. How to avoid risks and seize market opportunities is an important question for the commercial banks.Based on the experience and lessons learned from the world, the interest rate market is a very complex engineering system. It affects large and involves a wide range. As a key member of the financial system, banks are more vulnerable to shocks. In this paper, combining with the actual situation of China Merchants Bank, the author analyzed the impact of interest rate marketzation to China Merchants Bank, from the points of business capacity (including business management, development and profitability generated). With reference to the international advanced management mode and combined with the reality of China Merchants Bank, the author try to explore basic ideas to deal with the interest rate market reform for China Merchants Bank.In this paper, as an example, through the branches of the financial statements, where the environment and the overall economic situation analysis of Yangzhou Branch of China Merchants Bank, the author investigate the effect of the interest rate market for the commercial banks’ profitability and their coping strategies. This paper aims to provide a reference for Yangzhou Branch of China Merchants Bank management practices.