The Impact Of Benchmark Interest Rate Marketization On The Performance Of China's Commercial Banks

Economic development is the premise and foundation of financial development, and financial development is a means and the power of the development of the economy. Since the reform and opening, our country economy maintained for 30 years with sustained and rapid development, the finance which is the core of modern economy has won the lasting development. With the development of financial industry, especially with the development of the joint-stock Banks and city commercial Banks, the disadvantages of the traditional interest rate control is becoming more and more apparent. In order to make the financial industry to adapt to the development of market economy, the market-oriented interest rate reform of our country began in 1983.In 1996 the central bank released the interbank lending rate ceiling management.In 2013, the people's bank of China canceled the loan interest rate cap and deposit interest rate in 2013 and 2015. At this point, all lending rates and deposit interest rates entered a period of interest rate marketization in our country. As Interest rate marketization promoted our country's financial resource optimizing configuration,it bring Commercial bank management of our country a lot of influence inevitably.Under the background of interest rate marketization, the paper explores Relationship between the benchmark interest rate marketization of our country and commercial bank performance, and seek the solution.The full text is divided into three parts.In the first chapter,firstly it analyzes the interest rate marketization in our country,it points out that this process is the gradual, twists and turns.It starts from the 1983 to 2015 when the central bank to cancel the deposit interest rates to rise.It lasts for over 30 years. Secondly, it analyzed our country commercial bank interest income ratio, return on assets and capital sufficient rate of indicators, our country commercial bank profitability is relatively stable and has strong ability to resist risk. Again, using the experience of the United States market-oriented interest rate reform, it summarizes the U.S. interest rate marketization of the necessary conditions, and it provides a basis for exploring the influence of benchmark interest rate changes on the performance of commercial banks in China.The second part use theoretical analysis to explore the influence between the benchmark interest rate marketization of our country and commercial bank performance.Under the background of the benchmark interest rate marketization of our country, commercial bank profitability and development faces both opportunities and challenges. China's commercial Banks face the opportunities of diversification of profitprofit, more competition, and a lot of financial derivatives' production.They also face the challenge of deposit and loan spreads' reducing, Interest rate risk enlarging and Non price competition intensifies.At the same time using the econometric model to analysis the relationship between the benchmark interest rate in our country and make an Chinese commercial Banks. The state-owned Banks, joint-stock Banks and city commercial Banks' net profit and the national inter-bank lending rates constitute the panel data model. And it make a regression analysis on the relationship using Stata software. Finally it is concluded that the benchmark interest rate and the change of our country commercial bank performance are relevant. Show the future along with the advancement of marketization of interest rate, the future development of Chinese commercial Banks will face a serious challenge.The third part based on the above research, combining with the opportunities and challenge of commercial bank of our country faced under the background of marketization of interest rate,it come to the conclusion that Chinese commercial Banks have to adjust the structure of banking business, do the implementation of risk prevention and control and the expansion of more innovative products, do a good job of financial pricing strategy.If we do so,the commercial banks of our country can develop steadily in the future.