The Influence Of Interest Rate Marketization On Commercial Banks And Countermeasures

It has been a long time since the research of interest rate liberalization wasconducted. Eighteen years have passed since the Central Bank released the interestrate control of the interbank market during the1990s. In the18thannual report of theParty, Chinese Government has explicitly come up with the idea of accelerating thereform of monetary system and improving the financial market system. China hasfastened the interest rate liberalization since2013---the Central Bank announced therelief of the loan interest rate surveillance. China’s first free trade zone---ShanghaiFree Trade Zone was set up on August22nd. On October25th, the loan base interestrate did concentrated offer and the release mechanism was successfully published.The boost of a range of the vital measures has indicated that it won’t be long beforeChina realizes the comprehensive interest rate marketization.The reform of interest rate liberalization belongs to a systematic andcomprehensive financial system creation. With the constant pushing of the reform, itwill certainly bring a huge revolution to the whole financial market. As an importantparticipant in the financial market, what kind of difficulty it will have facing theformation and pricing of interest rate and how it will take action to cope with the hugerevolution have become the hotspot of academic discussion. Mainstream ideas relatedto interest rate liberalization theories has been introduced in detail in the first twochapters, based on the literature review of the relative research both at home andabroad, such as Loanable Funds Theory、financial repression theory and Financialliberalization prodromes. In the third part shows the advanced conditions and thestatus we stay of the interest marketlization. In the fourth part shows the importantinfluences on banks. In the fifth chapter the successful representative-America in thereform of interest rate liberalization has been chosen our neighbour-South Korea andthe developing country-Argentina, which started this reform earlier but failed, to try tolearn from the interest rate reform abroad. In the sixth chapter, concrete suggestionsand steps dealing with the interest rate reform are put forward for banks based on thecomprehensive analysis of opportunities and challenges.