Analysis Of The Influence Of The Interest Rate Liberalization To Ping An Bank And Its Strategies

In the past two years, it is extremely uncommon for the commercial banks whose operating environment has changed dramatically. On a macro level, the economic is in a transition period that the growth of the traditional power have attenuated and the real estate market faced adjustments. Internet companies begins to take part in finance by the virtue of their resources and technology. The trend of disintermediation has become more and more obviously. Meanwhile, as the Interbank business continues to be much more regulate, the commercial banks are facing a heavy pressure. However, among these unfavorable factors, there is one factor that let almost all the banks make a decision to transform at the same time. That is named the interest rate liberalization. In the 2012, the People’s Bank of China decided to expand the deposit and lending rates interval. On of July, 2013, it fully liberalized the financial institutions lending rate restrictions. From the beginning of the 1996,it has lasted nearly 20 years that the interest rate market finally entered the final sprint stage. This article is based on the real-world background to do the study. About the interest rate market, the academia has made many valuable researches. Some scholars have studied the necessity and carried out market-oriented interest rate path from the national level, some scholars have studied how the interest rate market remodels the entire banking industry from the perspective of the industry, and some other scholars have proposed counter measures for commercial banks to have an impact on interest rate marketization. However, due to the past reforms that have not entered a substantive stage, most of the studies are based on a summary of foreign experience and anticipation. And few scholars emphasis on the study of the impact of the interest rate market for a specific bank. This paper choose Ping An Bank as a case bank to study what impact the interest rate marketization will bring about from a microscopic point of view and to see what strategies the bank take and if they are effective under the new environment. It is proved that Ping An Bank will benefit from the market-oriented reform of interest rates to some extend in the long run. Firstly, this paper summarized the previous studies. Secondly, it analyzes the interest rate market opportunities and challenges over the Ping An Bank. Thirdly, digging out the Ping An Bank interest rate market competition and strategies through the financial information. Finally, on the basis of the relevant index system it constructed such responses which were evaluated and made management recommendations using methods named factor analysis. I hope this research can provide some advices for other commercial banks.