Study On The Development And Regulation Of Interbank Business In China

For a long time,Chinese banking industry has the balance sheet mainly consisting of loans and general deposits,and its main source of profits is the interest spreads of deposit and loan.But in recent years,with the development of economic and financial situation at home and abroad,the commercial bank’s original mode of operation focusing on deposit and credit business has been greatly shocked.Interest rate liberalization,internet finance development and mixed asset management have pushed the Chinese banking industry to reform.Since 2010,Chinese government has tightened its credit policy.As a result,severe regulation policies including several regulatory indicators impose restrictions on the development of banking business.And interbank business has rapidly become a collective choice for commercial banks to develop new profit growth points due to its low capital occupation and high profit.From 2009 to 2016,with the rapidly expanding transaction scale and constantly developed new business modes,the risks in the interbank business were growing.Research on the development,risk and regulation of interbank business in China is important to enrich the commercial bank management theory,enhance the risk management of banking industry and improve the effectiveness of the external regulation to promote the healthy.Firstly,this paper defines the concept and development process of interbank business in China,and analyzes the current situation,scale,structure and main innovative business patterns of interbank business.Based on these analyses,from the two aspects of evading supervision and promoting profitability,the paper studies the reasons and characteristics of the development of interbank business in Chinese banking industry.And the panel data regression model of 13 city commercial banks quarterly data from 2012 to 2016 are also used to analyze the factors influencing the development of interbank business.Secondly,this paper studies the risks and negative effects of the development of China’s commercial banks’ interbank business from different aspects.Risks include credit risk,liquidity risk,systemic risk and etc...And the negative effect is reducing the effectiveness of monetary and regulatory policies.Thirdly,this paper introduces the development process of China’s banking business financial supervision policy,and analyzes the effectiveness of these policies.Finally,we should promote the sustained and healthy development of commercial banks’ interbank business from six aspects,including improving the internal risk management mechanism of commercial banks,improving macro and micro supervision mechanism methods and accelerating the supporting reform of the financial system.