Innovation Of The Interest Rate Market And Commercial Banking Services

Interest rate marketization reform is one of the core goals in the financial systemreform in our country, therefore, it was proposed by Prime Minister Li Keqiang at theThird Plenary Session of the eighteen that the interest rate marketization should becontinually promoted for the financial system reform in or country, which will beaccomplished in two years. Firstly, the market interest rate pricing self-disciplinemechanism should be established; secondly, the base rate quotation for loans should beconducted; thirdly, the issuing and trading of interbank deposits should be promoted. Thishas fully demonstrated the importance of promoting the interest rate marketization reformemphasized by our government. However, as a double-edged sword, there are bothadvantages and disadvantages for the interest rate marketization in China’s bankingindustry. Therefore, we need to grasp the opportunities while facing the challenges, andcontinually promote the services and competitiveness of the commercial bank in order toachieve success in the interest rate marketization reform.In this paper, firstly the related theories on interest rate marketization weresummarized, with them thoroughly analyzed. Secondly, the practices of interest ratemarketization in both developed countries and developing countries were thoroughlyinvestigated respectively. Based on analyzing the influences of international interest ratemarketization on commercial banks, the inspiration for China’s commercial banks by theinternational experiences was obtained. Then, the current problems that China’scommercial banks are facing were proposed by analyzing the interest rate marketizationof China’s commercial banks through perspectives of deposit interest rate marketization.And the service innovation of commercial banks from the e-commerce level wereproposed by exemplifying how to prevent the impact of Yu-E-Bao to the deposits interestrate marketization. Finally, the countermeasures and suggestions of the servicesinnovation of commercial banks in the process of interest rate marketization wereprovided.