The Challenge Of Interest Rate Marketization Of Commercial Banks And Coping Strategies

Since 1979, China's financial sector has carried out a series of major reforms in the financial system,and since 1996 China started the interest rate marketization reform, after 20 years of exploration, now the interest rate marketization reform has entered the final sprint stage, November 2015, Premier Li Keqiang chaired a State Council executive meeting is to deepen financial reform, Accelerate the process of marketization of interest rates as an important part of the government's work.Needless to say, the implementation of the interest rate marketization reform brought many rare opportunities for China's commercial banks, such as the benefit for the reasonable pricing of commercial banks, the benefit for commercial banks to improve their customer composition, etc. At the same time, we should also see that the interest rate marketization is a "double-edged sword", when it brings an opportunity for commercial banks, it also brings a lot of challenges that can not be ignored, such as the interest rate marketization will make the profits of commercial banks reduced, the interest rate risk commercial banks faced will be greatly increased. As a commercial bank, it should actively take effective measures to deal with the changes the interest rate marketization brings, so as to achieve the healthy and sustainable development of commercial banks.Firstly, the paper gives an analysis of the research background, significance, research status at home and abroad, pointing out the necessity and importance of the research of the interest rate marketization. Then analysize the theories of interest rate marketization, explain the basic meaning of interest rate and interest rate marketization, the main contents of the two major aspects of interest rate marketization and the necessity of the reform of interest rate marketization in china, lay a solid theoretical foundation for the following research, and further to carry out a detailed review of the three stages and the specific process of the interest rate marketization reform. Then, qualitatively analyses the impacts the interest rate marketization brings for China's commercial banks, from two aspects of the opportunities and challenges, in-depth analyses the qualitative impact of the interest rate marketization on commercial banks in china-it is good for the rational pricing of commercial banks, it is good for commercial banks to improve the composition of its customers, it is good for commercial banks in accordance with their own situation and market environment to achieve business innovation, it is good for China's commercial banks to improve financial markets and business environment through competition, it is good for effectively combating the shadow banks, but also make the profits of commercial banks reduced, commercial banks to interest rate risk management and control capabilities will also be a severe test, and traditional business structure and traditional customer structure of commercial banks will be shocked, and will greatly increase the potential credit risks faced by commercial banks, and asset pricing of commercial banks will face severe test. Then from the empirical perspective, quantitatively analyses the impact the interest rate marketization brings for China's commercial banks, greatly enhancing the persuasion of the impact analysis. The quantitative analysis shows that the interest rate changes brought by the interest rate marketization will have a significant impact on the business performance (net assets yield) of commercial banks, and the impact is more complex. Taking into account the interest rate market reform will have a lot of impact on China's banking industry, this paper finally summarizes several countermeasures to deal with from the point of view of commercial banks, proposing commercial banks to improve their pricing mechanism, reform and innovate its management mode, deepen the reform of its business model, effectively avoid and resolve the interest rate risk, establish modern joint-stock financial enterprises, and that small and medium-sized city commercial banks can seek the road of development of the cooperation,this further provides business policy and development ideas for the various commercial banks to adjust the recommendations.