Influence Of Interest Rate Marketization Of Our Country Banking Research

Market-oriented interest rate refers to the interest rate level which is no longer decided directly by a country’s monetary authorities, but determined by supply and demand in the country’s capital market, so as to make the monetary authorities influence the market and interest rate changes in more indirect manner, as market players to. From the current international situation, it seems that, most of the developed countries and part of developing countries have been fully or basically achieved interest rate marketization reform. Practice has proved that the foreign interest rate marketization really benefits countries, financial market efficiency is improved obviously, getting a reasonable optimized configuration of funds, more ordered financial market, and, from a certain extent, promotes the development of the whole national economy. However, there are some countries, after the implementation of market-based reform of interest rates, experience bank failures, the economic crisis, and so on and so forth.Interest rate marketization is a huge systemic project, whose operation difficulty is high, will bring all areas of the economy different effects. Due to long-term strict control of interest rates in our country, commercial banks not have independent pricing power, but passively accept a given central bank interest rates, so both of the knowledge on interest rate management theory and the experience of risk management are seriously insufficient, which, to a certain extent, inhibit the development of these banks. In the long term, interest rate marketization reform can bring positive influence on the development of the banking sector, but in the short term, the market-oriented reform is bound to bring our commercial banks which are in the infant impacts and challenges. Market-oriented interest rate reform in our country, from 1993 to now, has experienced nearly 20 years of development. After 20 years of groundless talk, what kind of impact market-oriented interest rate reform has on the banking of our country on earth, how to correctly understand the interest rate marketization, for the purpose of improving its strength, developing stably and healthily, how to rationally deal with the interest rate marketization in the face of the opening of interest rates and the rising risks, have become urgent tasks of our country banking at present.This article firstly explores ideas through the domestic and foreign related literature about interest rate marketization reform,,and then simply introduces the related theories, concepts of interest rate and interest rate decision, raising the basic meaning and its theoretical basis of the interest rate marketization, consequently outlines the general meaning of the marketization of interest rate. Thereafter, through the examples of developed countries and developing countries respectively, induces how the interest rate marketization influence foreign banks, and summarizes their experience and lessons, with implications for Chinese banking industry. Where after, shows a brief review of the market-oriented interest rate reform process in our country, and analyses the positive influences and impact of challenges to the bank in our country on both sides of the marketization of interest rates. Finally, in view of the marketization of interest rate to the negative effects of China’s banking industry, highlight related coping strategies...