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On the marketization of interest rate impact on the risk of Chinese commercial banks and Countermeasures

Author: WangLiZuo From: www.yourpaper.net Posted: 2010-06-08 05:35:45 Read:

Abstract: interest rate marketization in China to fulfill the promise of joining WTO, before the full opening financial services, before the end of 2006 to meet the challenge of international financial consortium requirements.Therefore.The interest rate marketization reform is China's entire financial development strategy and the implementation of an important aspect of convergence with international financial.Under the condition of interest rate marketization, various influence factors of interest rates will be subject to supply and demand, capital market and political economy, while the volatility, exhibit greater volatility and uncertainty.And the interest rate variability and uncertainty in financial markets will make every economic subject to greater interest rate risks.Commercial banks as intermediaries to adjust capital surplus and deficiency, the main source of profit for the deposit and loan interest rates, as the capital of price uncertainty and frequent changes will cause increased return on assets or liabilities to reduce the cost of commercial banks.Therefore, the marketization of interest rate will bring enormous interest rate risk to the commercial banks, and have a significant impact on the assets and liabilities management, and strategic development.

Keywords: the marketization of interest rate; commercial bank; risk; control
, domestic and foreign interest rate marketization.
1, the foreign interest rate marketization reference.The marketization of interest rate is an important aspect of financial liberalization.Its theoretical basis is the theory of financial repression and financial source presented in the nineteen seventies to Mackinnon and Shaw's deepening theory.In the past 30 years, the interest rate market has become a very important economic policy adopted by many countries in the world.From the developed countries, the Asian newly industrialized countries to developing countries, the trend of interest rate liberalization continually surging.In the case of the United States, the marketization of interest rate is at high rates in the context of capital massively to the free interest rate financial commodity market flow people as a breakthrough, is a typical developed financial market gradually to the government regulation "Daobi" case.Its main characteristic is to avoid regulation, banking by exploiting loopholes in the law, innovation of financial tools and services.In 1980 the introduction of "through relaxation of the depository institution management and Monetary Control Act", and the special committees responsible for adjusting the deposit interest rates of the financial institutions, constantly raise deposit interest rates at the same time, the gradual abolition of the interest rate control rules, so that by 1986 fully realize the marketization of interest rates.Japan is to stimulate demand, to Treasury rates as a breakthrough to emerge from the economic downturn.The most direct impetus from commercial banks, is the financial innovation of commercial banks to move the government gradually relaxes the interest rate control, accept the legitimacy of innovation, realize the marketization of interest rate.However, the marketization of interest rates also increased the influence of interest rate risk of commercial banks in the financial markets in the active at the same time, from the eighteen eighties Erie ruosi bank insolvency, to today's American subprime crisis, risk control of commercial banks in the process of marketization of interest rates have been referred to a higher position.
2, China's interest rate marketization.In 1993, the Third Plenary Session of the fourteen Communist Party of China put forward the basic idea of the marketization of interest rate.In 2002, reiterated that the sixteen big reports of the party: "steadily promote market-oriented interest rate reform, optimize the allocation of financial resources".In 2003 sixteen of the Third Plenary Session further pointed out: "steadily promote market-oriented interest rate, establish and improve the mechanism of the formation of the interest rate determined by market supply and demand, the central bank through the use of monetary policy tools to guide the market interest rate".The Party Central Committee, the State Council will be identified as the general idea of the interest rate marketization reform: first let money market interest rates and bond market interest rates, and gradually promote market-oriented deposit, loan interest rates.Deposit and loan interest rate liberalization will follow: "first foreign currencies,; the first loan, after the first deposit; long, large, short-term, small" order.From the actual situation, the interest rate marketization began in 1978, but until 1996 June opening of the inter-bank lending market interest rates move really opened China's market-oriented interest rate reform and the first act, by September 21, 2000 to achieve foreign currency loan interest rate marketization is substantial to take the first step, to deal with the financial opening when released in 2007 Shanghai interbank offered rate, the interest rate market in China has far exceeded the financial opening requirements, so China's reform of interest rate market has basically come to deposit and loan interest rate liberalization of the final assault fortified positions and cracking stage.
two, the marketization of interest rate impact on China's commercial banks risk
Like other financial reform, interest rate marketization is suspended in the commercial banks of our country head a NASDAQ sword, make the commercial bank faces both opportunities and challenges.On one hand, because the main body status of China's commercial banks in financial markets, to mobilize the initiative of business of commercial banks to interest rate marketization, to realize the business objectives, and strengthen the rational allocation of resources, on the other hand, the management of interest rate marketization to the commercial banks has brought serious challenges, mainly in the interest rate marketing on the following impact:
1, the interest rate marketization exacerbated the liquidity risk of commercial banks in china.Fluctuations in market interest rates is for commercial banks more and.Because of this, once the marketization of interest rate, will give the bank business to bring great uncertainty, this uncertainty, will make the Commercial Bank of our country faces the bank funds flow related project management can not be timely recovered, resulting in stagnation in the management of capital projects, greatly exacerbated the liquidity risk of banks the.
2, the interest rate marketization exacerbated the competition of commercial banks and the yield curve risk.At present our country for rate control in control deposit interest rate upper and lower loan interest rates way. This restriction makes the allocation of financial resources to ensure the high spreads commercial bank to a great extent.If the control relaxation, in the premise of comprehensive financial openness, domestic and foreign savings deposits and loans of financial institutions competition is bound to aggravate, narrow margin can hardly be avoided, but at present our country banking business single, loan interest income is the main source of profits, which will undoubtedly bring a heavy blow to the commercial bank.In view of this, in the current intermediate business is not developed when the bank will make every attempt to increase the sensitivity of deposit and loan business, loan business interest has thousands of poor external don't, with floating interest rate down, will cause the structure of commercial bank assets, debt maturity mismatch, resulting in the risk and return of income uncertainty is increased.
3, the marketization of interest rate will cause the structural risk of interest rate of commercial banks.The deposit and loan interest rate fluctuation caused by inconsistent structure of interest rate risk, this risk is usually with the deposit and loan interest rate fluctuation is inconsistent or long-term deposit and loan interest rate fluctuation not consistent, leads to a reduction in bank net interest income.With the marketization of interest rates, interest rate fluctuation such inconsistencies in the market constantly business, the structural risk of commercial bank interest rate increase.
4, the interest rate marketization exacerbated the borrower adverse selection and credit risk.Because the inflation situation 08 years a quarter highlights, the main work in our country at present is the tightening of monetary policy and fiscal policy, the main source of the financial market of direct financing and indirect financing market atrophy of the funds, the marketization of interest rate often lead to higher interest rates, and interest rates rose, because financial markets exist information asymmetry, often will lead to adverse selection in credit markets and adverse incentive, thereby increasing the overall credit risk.
three , measures to strengthen the banking risk control under interest rate marketization
Can be seen from the above analysis, the marketization of interest rate in current China's financial market is not mature period to implicit bring commercial bank's operation risk is hitherto unknown.Therefore, commercial banks must have a fully prepare, to respond to fluctuations in market interest rates risk.Therefore, in response to the path can be selected from the following aspects:
(a) to adjust the proportion of funds, reduce the cost of capital, improve the internal bank capital adequacy ratio.Internal operation cost is one of the main constraints, commercial banks will lead to high cost, high risk, so the cost is one of the important measures of the marketization of interest rate of commercial bank profitability.From the specific situation of China's banking industry, the internal operation cost the bank still tight space, and reduce the cost of the key lies in the establishment of a sound operating mechanism, which requires our debt service by agglomeration as target transformation efficiency as the goal, to encourage savings change by blindly in order to promote the control of cost of capital and efficient use, optimal allocation of the proportion of assets and liabilities in the number, duration and type, the bank internal capital adequacy ratio increase, thereby reducing the liquidity risk is exacerbated by the marketization of interest rate.
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