Interest Rate Liberalization And Commercial Banks

The process of interest rate liberalization, China is bound to bring important influence on our country commercial bank management, lead to profound changes.In this background, this article first in combining the theory of financial repression and deepening, the western theory of interest rate decisions on the basis of the review process of our market-oriented interest rate reform stage. Interest rate liberalization reform in our country basically can be divided into three phases, is a "booster" of our country’s financial system reform. The reform is a gradual reform, and plays a double-edged effect.Secondly, take the Bank of China, China construction bank, industrial and commercial bank of China, agricultural bank of China as the typical representative, analysis the influence of interest rate liberalization of commercial Banks in our country. Positive effects include:to promote the commercial bank financial service innovation, and promote the commercial Banks operating mechanism change, is conducive to the improvement of commercial bank management environment, is advantageous to the commercial Banks to establish reasonable internal pricing mechanism. Negative effects include:reduced the city commercial Banks profit space, increase the city commercial bank interest rate risk, credit risk of commercial Banks, improve the city commercial bank market competition pressure.Again, this article selects 2008-2012 agricultural bank shandong branch deposits, intermediary business, loan and other related data analysis of the liberalization of interest rate on the bank’s dominant and recessive effect. Study shows that the bank of traditional business model is hit, strong time far away, commercial Banks should not be constrained by traditional management pattern and the existing mechanism, to keep up with The Times development, the development characteristics of financing products, efforts to develop intermediary business, and put forward the feasibility of higher pricing strategy.Finally, this paper put forward the conclusions and recommendations. Due to the competition between domestic commercial Banks, the traditional business affected by a lot, in order to effectively solve the realistic problem, reduce the adverse effect, city commercial Banks should learn from foreign advanced experience, set up the bank market competition consciousness, improve the level of interest rate management, pay attention to the bank financial service innovation, and actively introduce and cultivate talents, in order to achieve good effect.