An Empirical Research Of The Impact Of Price Competition On Risk Behavior Of Commercial Bank

As the world economic integration, financial liberalization tide rise ceaselessly, the market-oriented interest rate reform will be accelerated obviously. The target of interest rate reform is to give commercial banks greater autonomy in interest rates, commercial banks can determine their own deposit and lending rates according to their business strategy, which play in the pricing market initiative. While from the perspective of resource utilization for the reform of interest rate marketization can optimize the allocation of market, make more effective use of the money, but for profit maximization as the management goal of the commercial banks, savings and loan market pricing power for stimulates the commercial banks to obtain more resources and compete the price, and the way of competition intensifying will directly lead to the change of the commercial bank’s risk appetite, the commercial bank management to produce the effect of uncertainty and endanger the stability of the commercial bank management. Therefore, the study of the effects of price competition in commercial banking risk behavior in the interest rate market on the process of how to guide commercial banks to conduct a reasonable price competition and control of commercial banks’ risk behavior has important theoretical significance, especially in China’s interest rate market after entering the stage of deepening reform, the meaning will become more important.In this paper, the research is divided into six parts. The first part presents the background and significance, research ideas and methods, collate research scholars price competition on commercial banking relationships and risk behaviors. The second part of the commercial banks on the basis of an overview of the theory and the theory of price competition on the risk behavior of commercial banks to explore the mechanism of price competition impact on risk behavior. The third part from deposits and loans, respectively, measured the changes in the1998-2013years of China’s major commercial banks in the degree of price competition, and its analysis of the causes made. The fourth choice for loan losses were accounted for and indices to measure credit risk and operational risk behavior behavior of commercial banks. The fifth, respectively, with four model analyzes the impact of price competition for deposits and loans in the credit market risk and operational risk behavior behavior, come to save the market price competition and credit risk behaviors loans U-shaped relationship, with a linear relationship between business risk behavior conclusions. The sixth part is conclusion and Suggestions for part of the paper, the main conclusions of the article made a comb, and put forward the relevant policy recommendations.