China's Transition Period The Interest Rate Market And Bank Vulnerability

Interest rate market1ization is the inevitably choice of our country for economicaldevelopment and financial Deepening in transition economies. Although the goal hasclear, but the system vicissitude process has filled the risk actually. Especially for ourcountry, which is a developing country in transition economies, the market orientationreform of interest rate impacts entire finance system as well as national economymore violently.This article is from the view of a country in transition economies, research themarket orientation reform of interest rate and banking fragility associated in ourcountry, analysis the difficulty and the challenge which banking industry has to face,and use both quantitative analysis and qualitative analysis. The aim is to propose thebare bone and the policy suggestion for the market orientation reform of interest ratein our country, reduce contradiction between interest rate Interest rate market1izationand bank stable in reform period, and advance Interest rate market1ization smoothlyto carry on.