"Interest Rate Consolidation" Accelerates The Research On The Impact Of Commercial Banks' Liability Business

The 19 th National Congress of the Communist Party of China put forward: "To make the market play a decisive role in resource allocation." The interest rate marketization reform is an important measure to play a decisive role in the market's interest rate decision mechanism.The marketization of deposit and loan interest rates in China started with the floating range of deposit and loan interest rates given in 1998,and the abolition of the upper limit of deposit interest rates in 2015 marked the completion of the marketization.But in fact,China still has two tracks of benchmark interest rate and market interest rate.On the one hand,the deposit and loan interest rate of commercial banks is still guided by the official benchmark interest rate;on the other hand,the money market interest rate is completely determined by the market.The existence of the dual-track interest rate system not only caused the unfair treatment of state-owned enterprises and private enterprises in the credit market,but also caused the double-track pricing of deposits and active liabilities in commercial banks' liability business.Deposits in commercial banks' debt business are still affected by the benchmark interest rate,while their active debt interest rates are determined by the market.However,the dual interest rate system is only a transitional institutional arrangement.In order to further rationalize the monetary policy transmission mechanism,build interest rate corridors,and form a price-based monetary policy,in recent years,the central bank has repeatedly publicly stated that it is necessary to accelerate the “interest rate merger”,which means the benchmark for commercial bank deposit pricing will accelerate the transition to market interest rates,which in turn will impact commercial banks' overall debt costs,liability structure,and liability stability,and further affect the commercial banking business.Therefore,the acceleration of "interest rate merger" will also affect the overall operation and management of commercial banks.Therefore,the impact of “interest rate merger” on the liability business of commercial banks is a problem worthy of attention in the management of commercial banks.This paper firstly reviews the related literatures on the impact of interest rate liberalization on the liability business of commercial banks at home and abroad,and then reviews the related theories of interest rate marketization and commercial bank debt business.Based on the analysis of China's "interest rate merger" acceleration and the development status of commercial banks' debt business,the vector autoregressive model is used to analyze the impact of "interest rate merger" on the liability cost,liability structure and liability stability of commercial banks.It is found that the acceleration of “interest rate merger” will lead to an increase in the liability cost of commercial banks,an increase in the proportion of active liabilities,and a decline in the stability of liabilities.These changes put forward higher requirements for the adjustment of commercial banks' debt strategies,the ability to manage debt costs,and their risk management capabilities.In view of the above problems,this paper puts forward some suggestions for commercial banks to carry out debt business under the acceleration trend of “interest rate merger”: gradually transforming debt strategy;using financial technology to increase the liability mode of commercial banks,improve the stability of commercial banks' liabilities;improve deposit pricing power;improve the ability to manage debt costs;enhance internal capital transfer pricing capabilities;enhance risk management capabilities.