The Impact Of Interest Rate Marketization On The Scale Of Bank’s Deposit And Loan

With the continuous improvement of China’s financial system,the reform of Interest rate market in China is also advancing.Although the commercial bank’s intermediary business and off-balance sheet business has been sufficient development in recent years,however,the main source of income of China’s commercial banks is still the traditional way of deposit and loan interest income.Therefore,it is very important to study the impact of interest rate marketization reform on the deposit and loan business of commercial banks.This paper first introduces the related notion and its theoretical basis,then produce the theoretical analysis of the impact of interest rate marketization on bank deposit and loan sacle based on these theories,from the perspective of deposits and loans.In the meantime,this paper chooses the shibor index which is the most representative of China’s interest rate marketization,because shibor is the earliest interest rate market released in China,and shibor has the strongest degree of marketization,so it is the beat index to reflect the supply and demand of China’s credit market.Then followed by the idea of incident research,using Granger causality test and impulse response analysis,to prosecute the empirical analysis of the impact of interest rate marketization on the scale of deposits and loans of Chinese banks.The Granger causality test verifies that there is a causal relationship between interest rate changes and the size of the bank’s lending,But the Granger causality test can not account for the existence of a causal relationship between interest rate changes and the size of the bank’s deposits.Learn from the idea of incident research,Take the data June 30,2012 as the midline,By validating after June 30,2012,which means the interest rate control is relaxed,how dose Interest rate impact on the size of the Bank of China loan and the size of the deposit,and compared with the previous impulse response analysis using complete data,we found that the relaxation of interest rate control to the size of the Bank of China loans and the scale of the deposit to bring the impact of roughly the same,specifically reflected in the impact of interest rates to enhance the sensitivity of the impact,amplify the impact of interest rates on the impact of intensity and shorten the impact of interest rate impact on three aspects.And the relaxation of interest rate controls making the impact of interest rates to the Bank of China to absorb the scale of the impact of deposits is more obvious than before.At last,The article gives out recommendations combines the findings,inclouds that commercial banks need to improve the system of hierarchical authorization,develop off-balance sheet and intermediate business financial products while improving service quality,strengthen interest rate risk prevention and control and gradually enhance their bargaining power and so on.