Research On Boc's Differential Management Based Onthe Market-Orientation Reform Of Interest Rate

In our country,the commercial banks have been accustomed to a business pattern earning huge profit byexpandingasset scale with the long-term interest rate control policy,their customer structure focus on large and medium-sized state-owned enterprises,the powerful listed companies,their main business are deposit and loan business.Thus interest income accounted for up to 70%-80%in the whole income structure,3%interest differential gap as a lucrative and stable source of profits,the commercial banks generally lack of enthusiasmtoinnovate and the strong will to improve service quality.With the depth and breadth of China's market-oriented interest rate reform continues,commercial banks have more and more independent pricing right,accordingly the spreads of deposit and loan rate are narrowing at the same time,the direct financing tools of monetary market and capital market emerge in such a large amount that the financial industry face an increasingly fierce competition.It'sdifficult to remain the traditional high interest pattern for commercial banks.Therefore,China's commercial banks cannot rely on the spread of interest rate any more,it's necessary to reform business pattern in order to adapt to the floated interest rate and the competitive environment.This first chapter gives an overview of the profit model of the interest rate market and commercial banks,analyzes the reason and the process of China's market-oriented interest rate reform.Through analysis the impact of income and profit structure of banks,take Bank of China as an example,points out that the Chinese Commercial Bank of our country faces competitive market.The bank must take steps to improve the innovative product and service,and puts forward the corresponding measures and suggestions.