The Influence Of Interest Rate Marketization On The Market Competition Of Commercial Banks In China

Interest rates as the price of money,plays an important role in modern financial markets.With the development of economy,interest rate policy of the government reduced the efficient allocation of resources,hindered the development of commercial banks and the financial markets.In recent years government gradually accelerates the process of marketization of interest rate in our country and has basically completed the marketization of interest rate.With the full liberalization of interest rate,commercial banks have more independent pricing rights,thus the competition between commercial banks will be more intense.This article takes the commercial bank market competition as the breakthrough point and respectively use SCP normal form of traditional industrial organization and the PR model of new industrial organization to analyze and measure the degree of competition in the market at present stage.On this basis this article also take the interest rate liberalization as breakthrough point to analyze its impact on commercial bank competition through Stackelberg price leadership model and econometric model.Through the research and analysis in this paper,I get the following conclusions:(1)China’s commercial bank market has entered a normal state of the combination of low concentration and the competition among commercial banks has been quite intense.(2)The impact of interest rate marketization on commercial banks is not significant,but as a part of government policy,the financial reform has been steadily advancing in the process of gradual reform.Explain the effectiveness and applicability of the development model of "dual track system" of government regulation.(3)With the liberalization of interest rate pricing,the price competition between commercial banks is expected to be more intense,the main business will be affected and the phenomenon of bank failures may occur.(4)Financial reform marketization virtually caused greater competitive pressure to commercial banks,prompting them to continuously strengthen their comprehensive competitive ability,improve the service efficiency of funds,thus contribute to the increase of the social welfare level.In view of the full text analysis and the conclusion,put forward the corresponding suggestions in perfecting the pricing,competition and guarantee system and the management mode etc.