| The market-based reform of interest rate is that the government and the centralbank relax and remove restrictions on interest rates, in order to determine the level ofinterest rates through market supply and demand of the money. This reform is animportant content of the overall reform of the financial sector in China. The Decisionon Major Issues Concerning Deepening Reforms was adopted at the close of the thirdPlenary Session of the18th CPC Central Committee, which points out the importanceof accelerating the market-based reform of interest rates.In1996, the governmentopened the reform process. After18years, China’s market-oriented reform of interestrates has made significant progress. Among them, interest rates of the domestic bondmarket and the inter-bank lending market has been market decided, as well as thediscount rate; Interest rates in currency markets and foreign exchange market havebeen basically achieved market pricing. The top priority of the market-oriented reformof interest rates is the marketization of the RMB deposit-to-loan interest rate.In July2013, the people’s bank of China decided to fully liberalize loan interest rate in thefinancial institutions since July20,2013. Up to this point, there is the last step ofmarket-oriented reforms of interest rates, namely the RMB deposit interest ratemarketization. In2014, Zhou Xiao chuan, governor of the people’s bank of China,says at a news conference during the national annual that, unlocking deposit ratesshould be the last step in the marketization of interest rate, and probably beimplemented in the last year or two. Yi gang, the Vice President, also says that thecentral bank will focus on promoting the reform of the RMB deposit interest rate thisyear, so as to fully realize the marketization of interest rates.Our market-oriented reform of interest rate should learn from foreign experience.Foreign interest rate market began in the1970s, developed a "stagflation"phenomenon, Keynesian economics in trouble, neoliberal doctrine began to rise. Market-oriented reform of interest rates abroad can be divided into progressive reformand radical reform, the success of reform in favor of the former, while the latter oftenended in failure.This article discusses the impact of the interest rate market through commercialbanks combining theoretical and empirical methods, mainly using a literature study,induction variety of methods, comparative analysis as well as measurement model.Firstly, the relevant research literatures were reviewed, and the interest rate and theinterest rate market implications of the theory are explained, summarized the processof China’s market-oriented interest rate reform, indicating the necessity ofmarket-oriented reform of interest rates. Secondly, to explore the impact of interestrate marketization of the commercial banks by the two methods in this paper analyzesthe qualitative and quantitative analysis. Through the establishment of commercialbanks and the establishment of performance evaluation panel data regression modelderived empirical conclusion, the results show that changes in interest rates have asignificant impact on the operating performance of commercial banks. After the nearfuture of our country fully liberalized lending and deposit rates, deposit and lendinginterest rates rise is a high probability event.Fully market-oriented interest rates willlead to an increase of the magnitude of deposit rate will be greater than the magnitudeof increase in lending rates, resulting in a net interest margin will narrow; interestrate market will lead to increased competition in the commercial banks, changes inthe structure of income, interest income decreased proportion of non-Interest incomeincreased proportion. Finally, the interest rate market combined with internationalexperience, put forward China’s commercial banks from product pricing, internalstructure, management and other aspects of the response to the interest rate marketsuggestions. |
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