Research On Financial Disintermediation, Interest Rate Marketization And Commercial Banks Operation Management

As the financial market develops,the financial distintermediation effect banks face has began to show gradully.On one hand,due to the fact that residents pursue the diversified asset investment strategy, the deposits of the banks relatively wither or even reduced. On the other hand,the direct financial market has attracted more companies,the loan income of banks begin to reduce.And the interest rate marketization process continuously pushes forward,the cost pressure of the bank liabilities end increases. The traditional interest rate margin space has been compressed with the free and competitive interest rate price decision mechanism.This paper analyses the present situation of financial disintermediation and interest rate maketizaiton based on calculating the degree of financial disintermediation and interest rate, chooses the data about the management situation of 20 Chinese banks from 2002-2012, constructs the econometrics model with the cross term of financial disintermediation and the intermediate business innovation ability, market share, the level of liquidity, and the cross term of interest rate marketization and intermediate business innovation ability, risk level, cost pricing ability to study the specific direction and effect degree financial disintermediation and interest rate marketization has acted on the performance of commercial banks. The results show that market share, the level of liquidity, risk management and pricing power are important endogenous factors to achieve performance change of commercial banks. Financial disintermediation and interest rate marketization has strengthend the influence of these factors. The importance of intermediary business innovation ability needs to be improved through the perfection of marketization and interest rate system. This paper also puts forward policy recommendations which are beneficial for the performance change of commercial banks according to the model conclusion.Commercial banks need to improve risk evaluation management system, strengthen the market competitiveness by cooperation between city commercial banks, establish pricing mechanism of which market interest rate is the benchmark and the level of risk is the core, broaden the channels of funding sources to improve the comprehensive market competitiveness under financial disintermediation and interest rate maketizaiton. At the same time China need to continue deepening the reform of market interest rates system to achieve effective allocation of financial resources, which provides a good financial environment support for operation mode change of Chinese commercial banks.