The Effects Of Interest Rate Liberalization On Commercial Banks Of China

As for the commercial banks,the interest rate liberalization makes opportunities and challenges,difficulties and hopes both exsit.The commercial banks have to grasp rules,seize opportunities,overcome difficulties to win market opportunities and achieve scientific development.In this paper,the first part is an introduction of the background,significance and research methods,and organize the relevant domestic and international literature review’s findings.Second,on the basis of interest rates and the interest rate liberalization’s connotation,this part anlyzed the theories of the interest rate liberalization,including financial repression theory,the theory of financial deepening and new institutional finance interest rate decision theory.The third part reviewed and summarized China’s interest rates liberalization in the recent two decades.The fourth part analyzed the impact of the interest rate market liberalization banks from both positive and negative sides.Fifth,to find out the impact of interest rate liberalization of China’s commercial banks by empirical analysis.Sixth,according to the impact of the interest rate market liberalization brought to commercial banks,this part gave commercial banks four countermeasures and suggestions:First,innovative ideas,optimize and speed up the pace of bank integrated operation.Including the realization of "full-featured" commercial banking;explore "multiple licenses" non-bank financial institutions.Second,practise skills hardly,strengthen management,promote the restructuring and development of banks.Including establishing meticulous management philosophy;developing new businesses,supporting the restructuring by product innovation;and establish a "great service" concept,restructuring by service innovation;establish a "great transformation" concept,restructuring by technology innovation.The third is the integration of resources and collaborative interaction,to create a comprehensive bank risk long-term mechanism.Including improving the pricing mechanism;improving risk management mechanism;and sustained attention to the control of credit risk and liquidity risk.Fourth legislature roots and reinforce,maintain strategic focus,optimizing the commercial bank management system.