Research On The Impact Of Interest Rate Marketization On Commercial Banks

China has became a membership of the WTO since 5th November 2001, which means that the process of Chinese economy become a part of the world economy is increasingly, besides that it also indicates that the rules of the WTO will bring unprecedented impact on all areas of our economy, in accordance with the provisions of Our banking sector by the end of 2006 will be fully opened, China’s banking industry has faced more intense indifference to compete with foreign financial institutions. In terms of the impact of WTO on China’s financial system caused a whole, or as a market economy to continue to deepen reforms, give full play to market allocation of resources an important part of the role, the importance of promoting the interest rate market is clearly no doubt. The so-called interest rate market refers to the funds according to their needs both supply and demand conditions on the capital market plays a regulatory role, based on market prices, to determine a reasonable level of interest rates. With the collapse of the Bretton Woods system, the world’s developed countries from the eighties to the late nineties have each completed a market-oriented interest rate reform, China has experienced from 1993 raised the interest rate market-oriented reforms and the preparation phase, explore the development stage and cautious crucial stage.Interest rate reform will fundamentally change the fund price determination mechanism and rules changes in interest rates of commercial banks have been accustomed to produce deep impact on the external environment and internal commercial bank management model, so that commercial banks traditional operating mechanism, competition mechanisms and profitable impact and challenges:deposit and loan spreads narrowed, reducing the profitability of traditional; the non-price competition to price competition, enter a higher level of competition; market operation and commercial operation of interest rate increases made the transition risk; the frequency and magnitude of changes in interest rates increase, increasing the overall interest rate risk; interest rate of adverse selection in credit markets, increasing the overall credit risk. In this paper, based on the actual development of China’s commercial bank reform, drawing on the successful experience of the United States and South Korea interest rate reform, and actively explore the development path of market-oriented interest rate commercial banks:to establish to benefit as the core of intensive management strategies; adjustment of business structure, actively promote the development of the banking sector diversification strategy; interest rate risk management system, establish a sound internal control mechanism of interest rate risk; establish a new system, create a favorable external environment for the comprehensive response to the interest rate market.