Research On The Validity Of Shibor As The Benchmark Interest Rate Of Chinese Money Market

With the accelerated process of economic globalization,the china's financial system reform is also go deep into to realize the marketization of interest rate gradually which is an important content of the reform.That establishes the capital market supply and demand as the foundation,with the core as the benchmark interest rate.The system of the market interest rate decided supply and demand of funds of various interest rates.Thus,an important part of the market-oriented reform of interest rates is to determine the benchmark interest rate which suitable with China's economic development.After a series of explorations and reference from the western developed countries,the Central Bank of China formally introduced the inter-bank offered rate Shibor in January 4,2007 in Shanghai as a benchmark interest rate.Compare with other rates such as one-year interest rates on deposit and lending rates and inter-bank lending rates,Shibor has an obvious advantage.On the one hand,the price of Shibor is independent confirm by every banks and then the central bank to elimination and arithmetic to determined it,which can fully reflect the money market supply and demand situation.People can expect the money market development trend reasonably.On the other hand,Shibor has a strong guide;it can make the other interest rates in the financial market changes,and lead market-oriented direction of Chinese full realization of the goal of interest rate reform to promote.Therefore,Shibor is not only a product under the condition of market economy,but also the most appropriate choice of money market benchmark interest rate of China.It has further improved the interest rate structure Chinese,and is the milepost of market-oriented interest rate reform.Under this background,this paper analyzes the operation effect of Shibor in ten years,and investigates the validity of Shibor as the benchmark interest rate.In order to seek the path to improve the theoretical basis,it can enrich the Shibor theory,and it can guide the practice which has a further reference for Chinese interest rate marketization reform.The paper is divided into five parts:The first part: introduction.The first part describes the research background and the significance of it.And sort out the domestic and foreign scholar's theory in the benchmark interest rate and other areas where Shibor research to,after that,this paper introduce the research ideas and research methods and insufficient innovation and deficiencies part in research process.The second part: Benchmark interest rate and its choice.This part is to define the benchmark.It combines the develop rules and research results of scholar to confirm four main selection criteria of the benchmark interest rate.That is the market,the basic,the correlation and the stability.At the same time,this section introduces the benchmark interest rates of currency market in the three countries: United Kingdom,United States and Japan,and it explored the benchmark interest rate in China's currency market,which leads to the analysis and discussion of the following part about Shibor.The third part: the formation mechanism and application of Shibor.It is a detailed part to analysis the application of Shibor formation mechanism,the monetary policy transmission mechanism and the Shibor in the Chinese money market.It is a basic that we study the validity of Shibor as the benchmark interest rate in China currency market.The fourth part: The validity test of Shibor as the benchmark interest rate in currency market.In this chapter,accord the first three parts.I select the Shibor data in 2007-2016 as correlation analysis;Grainger Granger causality test,co-integration test and impulse response function to analysis and have a test basic about Shibor's market,correlation and stability.The fifth part: Research conclusions and policy recommendations.This part analyses the Shibor as the benchmark interest rate in Chinese currency market validity and pointed out the deficiency of it,and has some policy recommendations about perfect the formation mechanism,improve the external environment and strengthen the operation.