A Study On The Effectiveness Of SHIBOR As The Benchmark Interest Rate In China Under The New Normal

Benchmark interest rate is the central interest rate of a country and the core of market-oriented reform.In 2007,the people's Bank of China officially launched the Shanghai Interbank offered rate(SHIBOR)and trained it to become the benchmark interest rate in China.In recent years,China's economic cycle has entered a new normal,the problems in the real economy have become prominent,and the risks between financial markets have been increased,which objectively requires the industrial structure and monetary policy to transform simultaneously to ensure the risk mitigation in the process of economic transformation.Therefore,as a price-oriented monetary policy tool,interest rate plays an increasingly important role.The cultivation of benchmark interest rate and the establishment of benchmark interest rate system have become an important topic.The SHIBOR has grown into one of the most widely used benchmark interest rates over the past decade,but its effectiveness needs to be further tested.This article mainly includes four parts.In literature combing,this article innovatively combs the domestic and foreign literature from the benchmark interest rate market division angle;in the theory analysis aspect,this article give the definition after summarizing the domestic and foreign benchmark interest rate concept.Then this paper analyzes the properties and transmission of the benchmark interest rate,and analyzes the defects of the deposit and loan interest rate,the interbank lending market interest rate and the bond market interest rate by using the experience of the United States,the United Kingdom and other developed countries and regions in selecting the benchmark interest rate.In the aspect of current situation analysis,this paper first introduces the history of Shanghai Interbank offered rate(SHIBOR),and then comprehensively analyzes the current SHIBOR operation,which is based on the latest data.By using the methods of inductive summarization and comparative analysis,this paper analyzes the relationship between various SHIBOR,the development of interbank lending market,the existing properties and conduction paths of SHIBOR,and this paper concludes that SHIBOR is superior to other interest rates as one of the benchmark interest rates in China.In the aspect of empirical test,this paper improves the methods of data processing and measurement.At the same time,this paper uses state space model and vector autoregressive model to test the validity of internal conduction of SHIBOR,internal standardized financial market,non-standardized financial market and macro-output efficiency.The main conclusions of this paper are:The market share of SHIBOR is increasing,and it has been preliminarily marketable,basic,stable and testable;The internal conduction stability of SHIBOR is high and the conduction efficiency is strong.Meanwhile the longer the SHIBOR is transmitted to the long end,the greater the loss will be;SHIBOR can transmit effectively in the financial market,and the transmission efficiency of SHIBOR to banks,treasury bonds and financial bonds is 1,0.51 and 0.57 respectively;SHIBOR's influence is not enough in Non-standardized Financial Market such as Private financing Market;The conduction efficiency of SHIBOR to the output end is very low and far away from the target.Finally,combined with the theoretical analysis and empirical results,this paper puts forward targeted recommendations for the improvement of SHIBOR.