Analysis Of The Management Of Dynamic Adjustment To Local Financial Institutional Interbank Lending Limit

Financial market has an important position in a country’seconomic system, and the inter-bank market can represent thelevel of development of the financial market. Those years alongwith China’s economic developing fast，the basic role of theinter-bank market which mainly include financial institutionsto the economic becomes more and more evidence. In order toguarantee the development of China’s financial market gohealthy and orderly, we must do the management of the inter-bankmarket. Compared with developed countries, China’s interbankmarket is still very young, there are many problems to be solved.The lasted introduction-the Interbank Management Measures in2007，leads the inter-bank market coming to a new stage. Butit is not perfect. Therefore, it has important practical significance to do the research of how to manage inter-bank.This paper is to study the problems of the interbank limitsof Jilin Province. And propose appropriate improvements topromote the market participants to strengthen their internalcontrol management, standardize the inter-bank market, andguide the inter-bank market to develop healthy，then theregional financial will grow stability.First this paper introduces the basic theory of theinter-bank market and features and its complicated developingroad. Although today the inter-bank market in China has madea lot of achievements, but compared with the current economiclevel, interbank market still has many problems: the regulatoryframework, the corresponding detailed laws and regulations,professional supervision team, the continuity of theregulatory policies and industry self-regulatory organizationand risk awareness. The local corporate financial institutionsof Jilin Province has the problems of beyond the lending limitsapproved part, or taking advantage of due-from-banks or under the net lending to circumvent the regulation of inter-bankborrowing limit. To solve the above problem, and consider theactual situation of Jilin Province, we put forward theinterbank lending limit dynamic adjustment program. Thisprogram is a useful attempt, it not only enrich the connotationand means of interbank management, make the supervision of thelocal People’s Bank more effective, but also benefit tofinancial institutions optimize the credit structure, andprocure financial institutions operate stable.Finally, under the comprehensive consideration of theproblems of China’s inter-bank market management and Jilininterbank regulatory, we propose to strengthen theconstruction of relevant regulations and regulatory frameworkand foster inter-bank market self-regulatory organization. Theinterbank borrowing limit management is one aspect of theinterbank management, it is not so important as the interbankmarket interest rate.But it relates to the interbank’sliquidity, risk and other issues, also relates to the financial institutions operating management level and internal controlmechanism construction. So it is an important part to improveour inter-bank market.