The Research On How Lanzhou Bank Prepares Itself For The Market-oriented Reform Of Interest Rates

As the price of capital, the interest rate reflects the demand and supply of capital in financial market, and the degree of its marketization plays a crucial role in the allocation and effectiveness of financial resources. Moreover, it is the key factor deciding the profits of financial institutions, the ones which manage the financial resources. Since its implementation, the market-oriented reform of interest rates has been in the slow process. Though there is much limitation and insufficiency of the reform, it has shown much development and progress. This is also true with the reform of the Chinese commercial banks. After the expatiation on the theories of the market-oriented reform of interest rates and the reform process in China, the present author analyzes its effects on the commercial banks in China. Based on the successful experience of banks in western countries, the corresponding countermeasures and safeguard mechanism about how Lanzhou Bank can prepare itself for the reform are put forward.