Research On The Impact Of Price Competition On The Risk-taking Behavior Of Commercial Bank Under The Condition Of Interest Rate Liberalization

Tracing the history of global financial nearly a century, the developed market economies have set off a wave of market-oriented interest rate reform. Market-based reform of interest rates can give the commercial bank independent pricing power of interest rate, what's more, make it regulate the lending and deposit rates according to the operating conditions of itself independently. The optimization of financial resource configuration promoted the development of the real economy. The people's bank of China announced to open lending rate control comprehensive on July 20, 2013, announcing to cancel the deposit rate floating ceiling of commercial Banks and other financial institutions on October 24,2015, which marks the end of banking interest rate contronled in China. Market-oriented interest rate reform accelerates finance disintermediation, enhancing customer's bargaining power and selection power in our country, at the same time, also gave our commercial bank greater lending and deposit rates independent pricing power, exacerbated by the profit maximization as the management goal of the scramble for resources between commercial Banks, price competition as the main means of resource contention. And the way of competition intensifying and affect the risk-taking behavior of commercial Banks, and then the stability of our country commercial bank management impact of uncertainty.In order to better understand our country under the background of interest rate marketization of the competitive landscape and the relationship between the risk of commercial Banks, this article on the risk transfer effect, profit marginal effect theory, risk bearing channel theory and ancient Noel imperfect competition model theory as the foundation, analysis of deposit and price competition of commercial Banks risk bearing mechanism, the influence of provides the empirical study of the feasibility. Considering the particularity of commercial Banks business, use the non-performing loan ratio as proxy variable of its credit risk bearing, and commercial Banks as the general of the enterprise, selection of Z-score as a proxy variable of the overall bank management risk, they are used together to a more comprehensive measure the risk-taking behavior of commercial Banks. For deposits and loans accounted for most of China's banking, the measure of deposit loan price competition and price competition can basically represent the overall level of commercial Banks to price competition, so this article calculate the deposit and loan market Lerner index to measure the loan market price competition, and join the proxy variable of interest rate liberalization, select 16 listed Banks from 2008 to 2015 using the unbalanced panel quarterly data, using seem unrelated regression method, the empirical deposit and lending market price competition behavior of credit risk and operational risk behavior, the influence of draw the conclusion:deposits and market price competition of commercial Banks credit risk bearing has inverted u-shaped correlation between behavior, and the overall management of commercial bank risk-taking behavior negative correlation;Loan price competition on the market and the credit risk of commercial Banks behavior was positively associated U, positive correlation with the overall business risk bearing behavior. And put forward relevant policy Suggestions on the basis of the conclusion.