Research On The Marketization Of Interest Rate Having The Influence To The Commercial Bank

Interest rate is the price of the loan funds and is a tool to measure the allocation ofresources. What’s more, it is the main tool to transfer the monetary policy. No matterin developed countries or in developing countries, the reform of interest rate is a hugeproject. In some countries, it gets benefit for the successful reform of interest rate. But insome other countries, because of failure, it leads to economy crisis. Even so, making theinterest rate being market-oriented is the unique way to improve the allocation of resourcesand to be a market economy for a financial controlled country.At present, China core financial reform is the reform of interest ratemarketization. During the process of Interest rate marketization in China, the commercialbanks will be the first influenced. However, there are two sides. One side, it bringsopportunities for the commercial banks. On the other side, it brings challenge. Commercialbanks should grasp the opportunities and face the challenge.In this paper, firstly it describes the necessity reform of market-oriented interest rate,and analyzes the related theory of interest rate marketization. Secondly, it lists some countrieswhich had the successful reforming of interest rate marketization. Then, it reviewed thehistory of the reform of interest rate marketization in China. With the progress of interest ratemarketization, the commercial banks in china will suffer both positive and negativeeffects. Finally, in the interest rate marketization to positive and negative impact of China’scommercial bank, it says the commercial banks in China should take measures to avoid thenegative effects brought from the reform of interest rate. In conclusion, in some degree, thispaper have theoretical and practical meaning.