Interest Rate Marketlizaion And Bank Risk-taking

The introduction of the theory of financial liberalization provides a theoretical basis for many countries to implement reforms in the financial sector.One of the key points of financial liberalization is to liberalize the control of interest rates,that is,the marketization of interest rates.The interest rate is the cost of funds.The interest rate determined by the market supply and demand can effectively guide the flow of funds,so that the efficiency of capital utilization can be maximized.In order to adapt to the needs of the market economy and form an effective market pricing mechanism,China has also kept pace with the international trend.In 1996,it opened the interbank lending rate,which opened the process of interest rate marketization reform.With the continuous development of the market and the continuous improvement of the regulatory system,China has gradually established the conditions for realizing interest rate marketization.In October 2015,the interest rate of RMB deposits was released,marking the completion of China's interest rate liberalization reform for nearly 20 years.In the process of continuous advancement of interest rate marketization,the business environment faced by commercial banks has undergone tremendous changes.The narrowing of interest rates,interest rate fluctuations,and intensified competition in the same industry are in front of commercial banks.In order to adapt to the new development situation,maintain profitability and ensure risks,commercial banks must make appropriate adjustments to their risk-taking behaviors.Summarize the previous studies,expand from the time dimension and sample breadth;at the same time,based on the non-interest income perspective,actively explore the changes in bank risk exposure under the interest rate marketization,and improve the bank risk avoidance and related policies.Propose targeted countermeasures.This paper selects the data of bank and banking financial institutions from 2011 to 2017 as sample data,scientifically and rationally screens the sample data,and forms the nonbalanced panel data with a sample size of 1020 banks-year,analyzing the interest rate marketization,non-interest.The relationship between income and bank risk exposure is analyzed through the analysis of the sample and the empirical results.First,the marketization of interest rates after 2011,especially the speed of market-oriented reform of deposit and loan interest rates,has accelerated significantly.Generally speaking,this A change will still cause banks to increase their risk-taking.Second,the stimulus of interest rate marketization will increase,and the proportion of non-interest income of commercial banks will gradually increase.At the same time,non-interest income is also a "double-edged sword" for commercial banks.Because it has a non-linear impact on bank risk-taking: to a certain extent increase the proportion of non-interest income,it can reduce its risk-taking;when the proportion of non-interest income rises to a certain proportion,it will increase the bank's risk-taking.Finally,compared with the more developed countries,the non-interest income of commercial banks in China accounts for a relatively low proportion.Therefore,moderate development of non-interest income at the current stage will help banks “suppress” their risk exposure.By grouping the samples,it can be seen that for regional banks,the increase in the proportion of non-interest income can significantly increase the bank risk exposure brought about by the marketization of deposit and loan interest rates.Based on the above conclusions,this paper proposes policy recommendations from the perspective of development.