Interest Rate Marketization Of China's Listed Joint-stock Commercial Bank Profitability And The Influence Of Operating Risk And Countermeasures

Economic globalization is an inevitable trend of history. In this inevitable trend, China’s financial sector to gradually converging with the world, Interest rate system gradually from excessive interest rates to control free interest rate system, The reform of interest rates as the current hot topic.From the experience and empirical analyses after the changing of interest rate determined by the market-oriented factors, the volatility of the interest rate will increase, the gap between lend rate and deposit rate will be stressed, which will impact the commercial bank’s profitability and may increase the operation risk. At present, China’s commercial banks lay far behind foreign banks on the capability and experience of risk management. If China’s commercial banks are not able to raise the level of interest rate risk management as soon as possible, they will be placed in a disadvantageous position in the competition with foreign banks. It is also not conducive to the stable and healthy development of China’s financial industry.The Paper can be divided into six sectors. In first and second sectors, it introduced the definition of interest rate liberalization, the necessity of the reform of Chinese interest rate liberalization. In Third part, it illustrates the process of Chinese interest rate liberalization, and introduced the international partial national interest. In fourth sectors, it illuminated the challenges that our listed commercial banks will meet under the reforming surroundings. In last part, it was mainly introduced the related solutions.