The Effect Of Interest Rate Liberalization On Commercial Bank H And Countermeasure Study

With the end of5years of financial protection period after China’s accession to theWTO, our domestic banks will have to compete with the foreign banks. Foreign financialmarkets have already completed the interest rate liberalization, which requires China toaccelerate the pace of market-oriented interest rate; commercial banks should be integratedwith the international banking. At present, the interest rate risk control and businessstructure adjustment in our commercial banks both fall behind in foreign banks, we mustimprove the competitiveness of our domestic banks, so that it has the ability to compete withthe foreign banks. H bank is a regional small bank, which more need to prepare in advance.This paper aims to market interest rate analysis of the impact of H bank, put forwardcorresponding suggestions, have a certain theoretical and practical significance.This paper mainly uses the literature research method, logic method, inductive method,comparative analysis, content analysis of theoretical analysis. Firstly, we arrange andsummarize the present situation of interest rate liberalization, and summarize the practicalexperience of countries in the management of interest rate liberalization. Then according tothe situation of China’s economic and financial development, we analyze the importantmeaning to implement the interest rate liberalization in China, and review the course ofdevelopment of interest rate management system since the founding of our country. Thirdly,combined with the development status of H bank, we analyze the influence in the process ofthe interest rate liberalization in H bank, which include both challenge and opportunity. Ifcannot adapt to this change, H bank may be annexed and eliminated, but if can grasp theopportunity of reform, comply with the development trend, timely adjust business strategy, Hbank will make the business to further expand the autonomy and enhance the competitiveness.At last, we put forward suggestions to deal with the interest rate liberalization for H bankbased on the above analysis, from the pricing system, the development of intermediarybusiness, strengthening risk management and speeding up financial innovation strategy.