Research On Financial Fine Management Of Commercial Banks Based On Interest Rate Marketization

Starting from July 20 th 2013,the People's Bank of China has lifted the lower limit of 0.7 times the lending rate of financial institutions(excluding individual housing loan),so commercial banks can determine the lending rates on their own basing on market conditions within certain range.The People's Bank of China lowers the deposit-reserve ratio for commercial banks and representing the purpose is to let it play a regulatory role and rationalize the interest rate,so as to alleviate the high cost of business financing for enterprises.In recent years,there is an increasing competition in financial market in the process of interest rates liberalization.Their pursuit for benefits motivates financial institutions to improve their economic benefits through various measures.Under this condition,there is no doubt about subtilized finance management,which is an inevitable development trend.This finance management can help commercial banks to improve their work efficiency and provide a clear operating condition to manager to control risk so as to make sound business decision.From the present development of commercial banks,scientific and subtilized finance management is a necessary way to keep stable and healthy development.This management can also control the operating cost of commercial banks and will be wildly used.The author thought the subtilized finance management facilitates commercial banks in their cost control and to achieve their business target effectively.Starting the research from the perspective of interest rate linearization,this paper provides definition of interest rate linearization and subtilized finance management,and then elaborates both in details.This paper represents the influence of interest rate linearization on commercial banks from both the sides of opportunities and challenges,basing on which this paper conducts a further analysis of S Rural Commercial Bank on its finance management issue and provides feasible suggestions.After thorough analysis,this paper comes to four conclusions.Firstly,S Rural Commercial Bank should strengthen its ability to adapt to the interest rate linearization.It holds the traditional finance management model and its source of profit mainly relies on the difference between deposit and lending interest rates,lacking of business creativity and weakening in finance risk control.Secondly,during the process of interest rate linearization,S Rural Commercial Bank should take effective measures to improve its subtilized finance management to solve its financial problems.In general,under the back ground of interest rate linearization and the opportunities as well as challenges it brought,S Rural Commercial Bank should enable itself the ability to adapt to this market and improve its management to realize healthy and stable development.