The Interest Rate Market On The Impact Of China’s Commercial Banks And Countermeasures

Interest rate reform is one of the most important content of deepening the reform ofChina’s financial stage. Interest rate reform to China’s socialist market economic system,the market allocation of resources play an important role to play impact, but also forChina’s financial regulation, financial support for the real economy play a catalytic role,but also improve the operational mechanism of China’s commercial banks, improve theircompetitiveness necessary conditions. The purpose of countries to implement the interestrate market is: the introduction of market competition mechanism in the banking system,breaking the status quo of low efficiency of state revenues to the central government for thebank guarantee, the commercial banks to deposit spreads as the main source of profit, sothat commercial banks only maintain long-term competitiveness by savings and loanspreads in the past. Commercial banks must strive to improve financial product innovation,develop intermediary business. In the short term interest rate market will increasecompetition in the banking market, the bank’s earnings increased pressure. In the longterm, the interest rate market will promote further change in operation of commercialbanks to further grasp the relationship between good size, quality and efficiency, costconstraints, and pay more attention to capital constraints, the objective of maximizingshareholder value and accelerate business transformation, implementation can sustainabledevelopment.By studying the foreign interest rate market theory, the reform model, combined with ourcurrent situation in terms of market-oriented reform of interest rates and some of thedifficulties encountered in analyzing the reasons for this situation and the plight of the useof existing foreign commercial banks in response to the interest rate market experiences andlessons of the time, under the proposed countermeasures to meet the conditions of ourcountry at this stage, China’s commercial banks to promote the marketization of interestrates should be taken, and I hope these responses can promote the sustainable and healthydevelopment of China’s banking industry, and thus bring the whole continued prosperity ofthe financial system.