The Research On The Effectiveness Of Shibor In The Process Of Marketization Of Interest Rates

The reform for marketization of interest rates began in the1990s, after20years of development, Chinese marketization of interest rates has made great progress, currently, only deposit rate is not fully liberalized. In ordor to realize marketization of interest rates, the most critical is to form the money market benchmark interest rate. In order to promote the process of marketization of interest rates, to promote the development of Chinese financial markets, to foster Chinese money market benchmark interest rate, base on international experience, China launched the Shanghai Interbank Offered Rate in2007.Shibor was launched as our country’s benchmark interest rate, which should undertake the important mission on building money market benchmark interest rate system, so far Shibor has launched six years, whether it has been benchmark interest rate or it owns the potential to be, which is worthwhile for us to examine and research.The theoretical part of the article describes the definition of the benchmark interest rate and its function, and it should have five basic characteristics.Then under the background of the marketization of interest rates,it introduces the reform process of Chinese marketization of interest rates and the success we have achieved. At the same time, we can know the importance of building benchmark interest rate system. Then the article introduces the advantages and disadvantages of other money market interest rate,and the operation of Shibor since it was lanched.By analyzing the situation since it launched and compareing with other money market interest rates with the help of VAR model and other methods, to test that whether Shibor rate has owned five basic features which the benchmark interest rate shuld have. From the test results, we can know that in some degree, Shibor has fitted for the five basic features. Because of internal and external factors affect, Shibor as benchmark interest rate’s function has limited. At the last, the article lists some suggestion focus on the problems.