Research On Risk Taking Of State-owned Commercial Banks Under The Background Of Interest Rate Liberalization

With the continuous development and improvement of China's financial policy,the degree of interest rate liberalization is also deepening.On October 23 of 2015,the central bank announced the abolition of the floating rate ceiling,which freed the limit of commercial bank deposit interest floating rate and marked the basic completion of China's interest rate liberalization reform.The process of interest rate liberalization makes the major commercial banks in a situation of coexistence of opportunities and challenges.Under the background of interest rate liberalization,a series of problems,such as interest rate fluctuation and narrowing spreads,make the risk-taking of commercial banks more and more important in future bank management.And because of their significant roles in economy,the research on risk-taking of China's state-owned commercial banks becomes particularly important.Based on the theory of interest rate liberalization and commercial bank risk taking,this paper analyzes the background of interest rate liberalization and the corresponding change of economic environment of the market,and expounds the risk of state-owned commercial banks.And then this paper applies the panel data regression model to study the impact of interest rate liberalization on commercial banks risk-taking.According to the study,it shows that the narrowing net interest margin will adversely affect the risk taking of state-owned commercial banks,and the development of non-interest income can effectively diversify the risk.Compared to the joint-stock ones,state-owned commercial banks owe stronger capacity to resist the risk for their higher capital adequacy ratio.In terms of the operating environment,the banks take more risk when the economic environment is better.Besides,the rise in the money supply will obviously increase the risk of the banks.Thus,with the deepening of China's interest rate liberalization reform,the risk state-owned commercial banks take has expanded,which means that there will be greater challenges.This paper also compares the experiences of American and Japanese commercial banks in adapting to interest rate liberalization.Finally,from the aspects of government and banks themselves,suggestions under the background of interest rate liberalization are put forward to enhance the state-owned commercial banks risk-taking capacity.