A Study On The Strategic Choice Of China Construction Bank In The Process Of Interest Rate Marketization

Interest rate liberalization reform is the key of finance system reform.Since 1996, China has promoted the interest rate market for 18 years. Currently the reform has reached the core- liberalization of controls on the deposit interest rate ceiling and lending rates’ lower limit. Market interest rates for the future development of China’s commercial banks will have a significant impact.Other countries’ experience shows that the reform will bring earning risks, credit risks and interest rate risks to china construction bank. But on the other hand, the market interest rate will increase the autonomy of the bank’s operations and encourage banks to actively carry out product innovation. According to the calculation results of the interest rate sensitivity gap analysis of the model, we can see that the construction of the bank in the short-term gap is negative and larger amounts, that is, if the trend of rising interest rates, interest income in the short term will be severely affected. By conducting stress tests, if there is asymmetric lending rates rise, the net income of China Construction Bank will be substantially reduced.Finally, this paper give some suggestions for China construction bank. It should turn to intensive development, adjust the structure of bank business, improve the product pricing power, perfect interest rate risk management system, and take the opportunity of acquisition in the reform.