Influences On Commercial Banks By Interest Marketization And The Solutions To Changes

Recently, the reformation of financial system in China, especially the reformation of interest rate marketization has proceeded rapidly. With no doubt, the marketization of interest rate has influenced the banking industry greatly. Confronted with the deepening development of economic reformation, the banks are suffering its hard time. Before we started, countries like America, England, Germany, France and so on have finished their interest rate reformation long since the 1970 s, which lead to positive influences on economy, curbing inflation and management abilities of banks. However, the banking crises in America and Japan, which have affected their whole economy, also alarm us. We should not only study the experiences of countries’ which have finished their reformation, but also keep alarm of the conducting risks of banks after the marketization of interest rate. It is important to find a path which greatly adapts to the basic condition of our country, because the socialist market economy makes us different worldwide. We must go with the world due to the more and more important role China plays in the globalization, New problems like sharp rises in volatility & online financing shows inadaptability between financial system and developing level. The banks are under great pressure to develop. It is urgent to solve problems bellowing: how the marketization influence the banks and to what extent; how the banks achieve a stable transformation and discover a new business model. This paper analyzed the influence of the marketization of interest rate on the banks by the case study of Bank C from the financial perspective, based on the literature at home and abroad. According to the experiences of other country, the paper concluded several effective measures for the banks to confront the reformation. The measures emphasized the transformation of business philosophy, different orientation, financial innovation and consolidation of risk management, which are also useful for other banks.