On The Study Of Deepen Market-oriented Interest Rate Reform Of Shanghai Pudong Development Bank

Before1970’s, the interest rate regulations in the most of countries and areaswere controled. The implementation of interest rate regulation protected the small andmedium-sized financial institutions, helped enterprises to reduce the financial cost ofenterprises, kept the government economic development steadily, but that caused thelow efficiency, and financial disintermediation problems. In1970’s, with theeconomic development of various countries, the malpractice of interest ratemanagement gradually revealed, even a lot of countries were led to the economiccrisis.In order to change the backward economic situation, many countries graduallyliberalized interest rate regulation. By canceling the rationing of credit, andbegan toimplement the market-oriented interest rate reform. So far, almost all developedcountries and most developing countries have realized the interest rate marketization.The aim of the marketization of interest rate is to establish a rational andeffective interest rate system and the interest rate formation mechanism, by throughthe strengthen of competitive mechanism in financial markets.With the central bankinterest rate basis, money market interest rate as the intermediary, to effectivelymobilize and optimize the allocation of funds, to improve the operation efficiency ofthe whole financial system. After interest rate marketization reform,there are manycountries which financial system and economic efficiency has been improved.However, there are also some countries appeared setback and repeated in the reformprocess, even caused the financial risk greatly intensified even. Their developmentexperience is a great significance for our development.From1996the market-oriented reform of interest rate in China was taken in toaction, with several years of development, China’s interest rate liberalization reformhas entered into the final stage.In July20,2013, the people’s Bank of Chineseannounced full liberalization of lending rates of financial institutions, According totheir own situation, financial institutions can determine their loan rates based on the commercial principles, the full liberalization of lending rates also marks China’sinterest rate market reform strode important step, also indicates that China is enteringthe final stage of interest rate reform of the market--market deposit rates.Commercial bank is an important participant in the market economy, and is also oneof the most sensitive parts to the interest rate.Interest rate marketization bringsopportunities and challenges to the full ranges of bank.Shanghai Pudong Development Bank as an important part of many commercialbanks, also affected by the reform of interest rate marketization. In this paper, throughanalyzing and summarizing the processes and experiences of all countries in theinterest rate marketization reform, combined with the process of China’smarketizationof interest rate and the current development status, analysistheopportunities and challenges faced by the Shanghai Pudong Development Bank, andall kinds of existing problems during our interest rate marketization reform, so as toexplore how to further the reform of Shanghai Pudong Development bank.This study of the guidance of Shanghai Pudong Development Bank facing theinterest rate market further has important theoretical and practical significance, at thesame time, the development of other commercial banks also have certain referencesignificance.