Research On FTP Application Of My Country's Commercial Banks Under The Background Of Interest Rate Marketization

On October 24,2015,the central bank canceled the floating ceiling of deposit interest rates for financial institutions,and the upper and lower limits of the deposit and loan interest rates of commercial banks in China have been fully liberalized,and marketization has been realized in the form of supervision.However,in economic activities,the phenomenon of "double interest rate system" is still widespread.With the accelerating process of China's interest rate marketization,the operating environment of the domestic banking industry is undergoing extremely profound changes,and the traditional business management mode has been difficult to adapt to the requirements of future refined management.Based on the above considerations,this paper adopts a combination of qualitative and quantitative methods,focusing on the core issue of bank internal fund transfer price(FTP),and focuses on the following aspects:Firstly,with reference to the latest developments in foreign banking,the definition,developments,pricing methods and implementation principles of FTP have been systematically introduced and evaluated.Secondly,the financial environment of commercial banks in China has been analyzed.This is not only for the role of FTP in the management of commercial banks in China.The urgent demand also constitutes an institutional obstacle for banks to effectively implement FTP.The third is to analyze the current situation and influences of the implementation of FTP pricing in commercial banks in China.Fourth,through empirical analysis it reflects the large non-marketization resistance in the deciding mechanism of commercial banks'deposit and loan interest rates.On the basis of the above research,the paper concludes that although FTP has been widely promoted in China,it has not been implemented efficiently because the operation of FTP depends on certain financial infrastructure.Therefore,in the future,governments at all levels,regulatory authorities and commercial banks should work together to deepen the reform of interest rate marketization and improve the construction of financial infrastructure,so that FTP can truly become a useful tool for effective management of commercial banks in China,and promote commercial banks to enhance their international competitiveness as well as the ability to serve real economy.