A Study On The Impact Of Interest Rate Liberalization On The Finance Products Of Commercial Bank

In past years, the finance products developed so fast in China because they are the off-balance sheet business, which can allow a commercial bank to evade interest rate control. The development of finance products and its interest rate pricing mechanism, in turn, promote the interest rate liberalization of deposit and lending. In recent years, with the liberalization of interest rate control, commercial bank obtains a high degree of operational and pricing autonomy, thus finance products' pricing is more reasonable.This thesis tries to study the interaction between interest rate liberalization and development of finance products in order to prepare for the future development of finance products, and adjust the finance product business strategy timely to adapt to the new changes of interest rate.This thesis reviews the 30 years' process of interest rate liberalization and the development of finance products in China, analyzes the influence of interest rate liberalization on finance products in the issued scale, the term structure, the investment direction, the level of return on finance products and other aspects.This thesis analyzes the impact of interest rate liberalization on pricing of bank finance products. The author collects recent four-year bank finance product yield data, Shanghai Interbank Offered Rate and the benchmark interest rates. uses regression model to test the impact of liberalization of interest rate on pricing of finance products, and comes to the conclusion that at this stage, finance product pricing is greatly influenced by the market interest rate index, less affected by interest rate constraint index, the pricing of monetary finance products is determined by the SHIBOR, finance products have a market-oriented interest rate pricing power under the interest rate liberalization.This thesis puts forward bank financing business development countermeasures and suggestions under interest rate liberalization, such as improving pricing capability of commercial banks, speeding up the finance product innovation, strengthening the information disclosure of finance product, strengthening risk supervision of the central bank and commercial banks, and so on.