The Research On The Influnce Of Promoting The Deposit Rate Maketization In Chinese Banking

Have promoting of nearly20years, China’s market-oriented interest rate reformhas now reached the stage of deposit rate marketization which is the final and mostcrucial stage.Lifting deposit rate controlling means removing the last layer for thedomestic banks, at the same time,also putting the whole banking in our country in amore intense competition environment. With the background of the marketization of thedeposit interest rate,this paper has studied the possible influence on the Chinesebanking.Through the analysis of historical datas,the paper has arranged the course ofdeposit interest rate marketization reform in China.At the same time,this paper hassorted out the deposit rates of several banks in our country after the time of November22,2014, when the central bank of our country further deregulate the deposit ratelevel.As the reference, this paper has selected the United States, Japan and LatinAmerican countries and analyzed these experiences of interest rate marketizationbackground and processes. And this paper has summarized the experiences and lessonsof the reform, that the success reform requires gradual advance step, stable financialmarket environment, sound operating mechanism and effective financial regulation.This paper has used the VAR model to analyse and compare the deposit ratesensitivity of China and Japan.The model sample of Japan has selected by the time thatafter the market-oriented interest rate reform has completed. The model analysis hasshown that China’s savings deposit rate sensitivity is far lower than Japan’,that is underthe background of market-oriented interest rate,which means that the marketization ofinterest rates on deposits will enhance a country’s savings deposit interest ratesensitivity.That also make it possible that the banks of our country to compete with eachother through changing the deposit rate after the reform of deposit rate marketization.Based on the above results, the article has also further analyzed the possible influence inthe short term and long term.In the short term, promoting the reform of deposit ratemarketization will lead to lower saving-loan rate spread, lower profits, higher creditrisk; In the long run, the deposit interest rate marketization reform will make the Chinese banking to improve innovation capability, optimize the management structureand improve the business environment. Finally, this article puts forward severalcountermeasures and suggestions for the Chinese banking from the aspects of bankregulation and business innovation.