Analysis On The Impact Of The Interest Rate Liberalization On The Profit-making Model Of China’s Commercial Banks

With the deposit interest rate ceiling liberalized,China has entered the final stage of market-oriented reform of interest rates.In our country, the basic realization of the deposit interest rate of the market has come,and with the continuous deepening and development of the market economy in our country, interest rate liberalization will eventually achieve completely.This will greatly improve the efficiency of the allocation of funds and contribute to the development of economy of our country.At the same time, China’s commercial banks are facing the problem of upgrading profit-making model. Even after the "golden decade" of the period of rapid growth, the profit model of commercial banks did not improve much, the profit from the difference of the deposit rate and loan rate is still very high,.With the development of China’s economic reform and the promotion of interest rate market, the current profit model is bound to be difficult to sustain, commercial banks have to take the initiative to seek the new profit-making model in order to achieve a more profound development.Finance is a part of the economy, when China is in the era of the planned economy period, the bank of all business activities are protected by the state, there is no need to study on profit-making model. Commercial banks make decisions mainly based on benchmark interest policy of the government and the People’s Bank of China, lacking of the rights of independent pricing power. Because of the of the national policy and system, commercial banks of our country is far behind the best international banks in human resources, customer structure and ideas. The lagging concept restricts subjective initiatives of the reform of the profit-making model. So the national level support system is essential if the commercial banks wants to complete the transformation.The author also researches the process of interest rate liberalization in the United States and Japan, analyzing the liberalization of interest rate of commercial banks and how the commercial banks adapt to the environment and policy changes to achieving the profit-making model, and then eventually became a leader in the international banking industry.Through the analyze of the changes in the bank environment for the development in our country, the current development problems, and study the advanced experience of foreign countries, the author assumes that our commercial banks can achieve the profit-making model transformation by improving the operating efficiency, finding the nurturing the growth rate, strengthening risk control management and so on. Of course, the state system and policy support is essential in this entire transformation process...