Research On The Impact Of Interest Rate Liberalization On The Profitability Of Agricultural Bank Of China DY Branch

As the price of capital,interest rate is the core of modern economy and finance.From 1993 to the third Plenary Session of the 14 th CPC Central Committee the party put forward the basic idea of the interest rate liberalization reform since the liberalization of interest rate in China has gone through more than and 20 years,especially since the beginning of 2012,the interest rate liberalization reform has entered the accelerating stage.As the interest rate liberalization is a "double-edged sword",on the one hand weakened the national strict control of interest rates and create a favorable business environment and competitive opportunities for the development of commercial banks,prompting banks to improve the operation efficiency of asset liability management and the capital;on the other hand,the interest rate liberalization to bank loan spreads narrowed,squeezing profits the space of commercial banks,the traditional profit model impact.In the process of liberalization of interest rate,how to grasp the opportunity,meet the challenge and improve the management level to adapt to the market-oriented reform of interest rate is an important subject in front of the commercial bank.In this paper,the Agricultural Bank of China Co.,Ltd.DY Branch(hereinafter referred to as DY Agricultural Bank)as the object of interest rate liberalization and its impact on the strategy.In this paper,we can further enrich the theoretical system of the impact of interest rate liberalization on the profitability of commercial banks.In practice,through the concrete analysis of the current situation of China's market-oriented interest rate reform in DY agricultural bank profitability and the existing problems,learn from foreign advanced commercial banks have changed profitability under the condition of interest rate liberalization experience,combined with the actual proposed DY agricultural bank profitability transformation suggestions,provide a direct reference to the Agricultural Bank of DY profit the ability of a quick upgrade to DY agricultural bank profitability under interest rate liberalization.