Marketization of interest rate and countermeasures of state-owned commercial banks in China

Connotation of interest rate marketization

The so-called interest rate marketization refers to the change process of the interest rate determination mechanism in which both the supply and demand sides of money market independently determine the interest rate level. Specifically, interest rate marketization means that the central bank adjusts the benchmark interest rate according to the needs of monetary policy, and all commercial banks independently adjust the deposit and loan interest rates according to the changes in the supply and demand of the capital market, and finally form a multi-level interest rate operation mechanism that is guided by the benchmark interest rate of the central bank and can fully reflect the supply and demand of funds and reflect the intention of the central bank's monetary policy. Interest rate marketization emphasizes that interest rate truly reflects the relationship between capital cost and supply and demand, and exerts its economic leverage flexibly and effectively.

1. Problems in China's interest rate marketization reform

Relatively speaking, in the overall pace of China's economic reform and opening to the outside world, the interest rate marketization reform has made slow progress. As far as the present situation is concerned, China has not fully realized the marketization of interest rates, and interest rate control has seriously restricted the role of interest rates as an important price lever in resource allocation and distorted the interest rate structure. The marketization of China's interest rate system is still relatively low, mainly in the following aspects:

1. The degree of interest rate control is high, the level and structure of interest rate are not suitable, and the independence of banks is restricted. At present, the operating environment of China's interest rate policy is dominated by controlling interest rates. The decision of interest rate level and the formulation of differential interest rate policy are strictly controlled by the government, showing a high degree of planning and closure.

2. The determination of interest rate level has certain subjective blindness; The rate adjustment is not flexible enough. At present, the decision of interest rate level in China is made by the Monetary Policy Committee, and the decision-making power of interest rate is highly concentrated in the central government, so there is a serious time lag effect in the formulation and adjustment of interest rate.

3. Lack of effective market benchmark interest rate. In 2003 1 1 month 1 day, Cheng Sewer Forum, Vice Chairman of NAP Standing Committee, said: "The key to interest rate marketization is the setting of benchmark interest rate. The interest rate structure and risk structure can only be determined after the benchmark interest rate is determined. Without the established benchmark interest rate, the interest rate market is empty talk. The benchmark interest rate plays a central role in the whole interest rate system and prevents other interest rates. In a sense, the selection and determination of the benchmark interest rate is the core step of the interest rate marketization reform.

2. The significance of interest rate marketization for state-owned commercial banks.

First of all, it is conducive to expanding the independent management rights of state-owned commercial banks and enhancing their competitiveness. After the liberalization of interest rates, banks have the right to set their own prices, so they can make full use of this autonomy and give full play to their flexibility. The reform experience of various countries shows that after interest rate liberalization, the real interest rate of deposits has increased in different degrees. The rise of real interest rate will have a positive impact on deposits, attract fund recipients from banking systems such as stock market and black market, and enhance the competitiveness of commercial banks. Secondly, it is conducive to improving the management level of state-owned commercial banks. The marketization of interest rates has really liberalized the price of funds. The price competition between banks thus presents a new situation. But price competition must be backed by low-cost funds. In order to obtain low-cost sources of funds, banks will develop their strengths in financial products, marketing strategies and service means, which will inevitably intensify the intensity of competition and urge banks to change their business methods. Whoever has the initiative will get the market. (Under the new situation, trade associations of commercial banks care about the changes in the interest rate market and the fluctuation trend of international interest rates, and scientifically determine costs, rationally set prices, strengthen economic accounting and enhance their profitability according to their own conditions. It can be said that the reform of interest rate marketization and the change of interest rate generation mechanism are a comprehensive forging of the management of a commercial bank from the inside out. Once again, it is conducive to creating a relatively fair competitive environment. The marketization of interest rate and the perfection of financial market are complementary processes. Developed money market is a reliable guarantee for interest rate marketization. Because in the developed and perfect financial market, there are many kinds of financial instruments, diversified financial subjects, diverse financing methods and full competition, interest rates can fully reflect the price of funds, guide the rational allocation of resources and improve the efficiency of resource use. Otherwise, the marketization of interest rate will promote the development and perfection of financial market; Money market is the beginning of the process of interest rate marketization, and it is also the place for risk management of interest rate. The change of interest rate system promotes the development of money market. Finally, it is conducive to accelerating the reform of property rights of micro-subjects. The important condition of interest rate marketization is that the property rights of state-owned enterprises and state-owned commercial banks must be clear. Unclear property rights, weak internal budget constraints on interest, weakened risk liability beyond the time limit, and insensitive response to interest rates. At present, the property rights of state-owned commercial banks and a large part of state-owned enterprises in China are vague, and the marketization of interest rates has provided impetus for their reform and objectively promoted their property rights reform.

3. The marketization of interest rate makes state-owned commercial banks face severe challenges.

The marketization of interest rate is an inevitable historical stage for China's commercial banks and can greatly promote the reform of China's state-owned commercial banks. However, after the marketization of interest rates, the change of interest rate level is uncertain. Commercial banks in China that survive under control may have no time to develop new financial instruments for a long time to avoid interest rate risks, and will certainly face severe challenges, which are as follows:

1.

Increased the risk of bank interest rates. After the marketization of interest rate, the increase of interest rate level and irregular fluctuation have aggravated the vulnerability of banks and increased the interest rate risk of banks. After the marketization of interest rate, the increase of interest rate level and irregular fluctuation have aggravated the fragility of banks, which is likely to lead to the occurrence of banking crisis. Due to the long-term interest rate control in China, the interest rate has been artificially depressed, and after the interest rate is liberalized, the interest rate level will inevitably increase. The analysis shows that in credit activities, with the increase of real interest rate, risk borrowers will become more customers of banks, while corporate borrowers who are originally risk-averse tend to change the nature of their projects to make them have higher risk and income levels. As a result, the average level of assets decreased and the credit risk increased.

In addition, in the long run, the change of interest rate is affected by the real-time supply and demand of funds and will fluctuate frequently, but the fluctuation of interest rate means the existence of risks. How to accurately predict the changing trend of interest rate and reasonably determine the price water with competitive advantage; How to scientifically allocate the term layout of deposits and loans and maintain the best spread level;

How to accurately predict the changing trend of interest rate and reasonably determine the price water with competitive advantage? How to scientifically allocate the term layout of deposits and loans and maintain the best spread level; How to adjust the structure of assets and liabilities flexibly,

How to improve the level of reserve payment, effectively control interest rates to form a liquidity wind, improve the supervision and restraint mechanism, and guard against human interest rate risks, etc., will make commercial banks face severe tests.

2. It has a huge impact on the leading business of commercial banks. With the marketization of interest rates, banks will inevitably launch a fierce battle for deposits and loans for superior customers, and fierce competition will greatly narrow the differences in advantages of deposits and loans. At the same time, the marketization of interest rate promotes the development of money market, and a large number of temporary funds of enterprises no longer increase in value through deposits, but gain short-term benefits by putting them into capital market and money market; Residents no longer pay too much attention to whether the deposit interest rate only contains risk value, and paying attention to the money market with risk value will be greatly impacted by the bank-led business.

It can be said that after the marketization of interest rates, the real magic weapon for banks to compete is outside the interest rate means. As monetary capital is a highly homogeneous commodity, the quality of service is more important. Efficient and low-cost financial services enable customers to have higher income and are more attractive to customers.

3. It challenges the management of banks.

Under the interest rate control system, both the interest rate level and the interest-bearing method should be determined by the state. No matter how the state adjusts the deposit and loan interest rates, it fully considers the actual situation of commercial banks and always maintains a reasonable spread level. The interest rate management of commercial banks is very simple, as long as the national interest rate level is implemented according to the floating range given by the People's Bank of China, the interest rate change is limited and the interest rate risk is controllable. In this case, the management of banks must be passive. However, under the condition of interest rate marketization, fierce market competition forces banks to either use price means to attract customers by raising deposit interest rates and lowering loan interest rates; Either rely on high-quality services and satisfy customers through functional innovation, product innovation and technological innovation. But this requires commercial banks to change their current management, methods and organizational systems.

4. It challenges the quality of employees in commercial banks. With the acceleration of interest rate marketization reform and the increase of interest rate risk, it will be very urgent to strengthen the analysis and prediction of future interest rate trends. State-owned commercial banks need a group of high-quality financial professionals in this field. These people should not only have profound theoretical foundation, but also have rich practical experience in commercial banks. They should not only deeply understand the fluctuation of domestic interest rate changes, but also be good at predicting interest rate trends. However, at present, state-owned banks generally lack tools and interest rate risk management professionals who can control and avoid interest rate risks in a timely and effective manner, and are weak in forecasting interest rate trends, risk identification and control.

Four. Coping strategies of state-owned commercial banks

With the process of interest rate marketization, the interest rate has more and more influence on state-owned commercial banks. In this case, state-owned commercial banks should actively seek countermeasures.

1. Establish a pricing system for financial products. In the case of interest rate marketization, can commercial banks formulate a scientific and reasonable pricing system with flexible and effective quotation ability to balance risks among 20 benefits?

Is the key to its sustainable development. In this process, it is necessary to establish an effective comprehensive income measurement system, and comprehensively evaluate the comprehensive income brought by customers to commercial banks, the size of customer credit risk, the length of loan period is the size of interest rate risk, and the cost of collecting funds and the share of operating costs of commercial banks.

2. Increase the ability to develop intermediate business products and adjust the profit structure. After the marketization of interest rates, the spreads of bank savings and loans have decreased, and the profit level has decreased, which requires state-owned commercial banks to vigorously develop intermediary business. Banks can make full use of the market subject qualification of commercial banks while actively developing the business of consignment and payment, and actively provide other financial institutions with bond issuance, bank card transfer, agency insurance, fund trust, broker financing, asset management, financial consultancy, investment consulting, etc., improve the intermediary business to buy girls, and actively develop new varieties of low-risk and high-yield intermediary business, so as to greatly enhance the profitability of banks and promote their sustainable development.

3. Establish a flexible and efficient interest rate management organization and vigorously cultivate interest rate management talents. According to the core principles of the Bethel Committee on Banking Supervision on effective bank supervision, under the interest rate marketization environment, commercial banks must set up professional interest rate risk management departments to manage and guide the whole interest rate work, and coordinate and cooperate with the communication work inside and outside the bank. The primary task of the interest rate control department is to conduct comprehensive interest rate sensitive control on the level of bank assets and liabilities; External decision, internal advantage? Determine the interest rate authorization of the head office to branches, and be responsible for the training of employees' interest rate risk management. In addition, a communication channel of high interest rate information should be established. After the interest rate marketization, the effectiveness of interest rate information transmission within commercial banks will be greatly improved, so as to ensure that all interest rates set by the head office can be transmitted to any business outlets of commercial banks in time and ensure the unity of interest rate policies of commercial banks.

4. Accelerate the property right reform of state-owned commercial banks. According to the Company Law, commercial banks are competitive industries, and there is no legal obstacle to their shareholding system reform. The specific transformation form of the property right reform of state-owned commercial banks is the establishment of joint-stock commercial banks. In the reality of China, according to international practice, the commercial banks in China can become real commercial banks and do a good job in enterprise management by gradually changing from state-owned sole proprietorship to state-owned holding company and eventually becoming a joint stock limited company, and establishing a corporate governance institution and a framework for separating management rights, ownership rights and supervision rights.

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Marketization of interest rate and countermeasures of state-owned commercial banks in China

Connotation of interest rate marketization

The so-called interest rate marketization refers to the change process of the interest rate determination mechanism in which both the supply and demand of funds in the financial market independently determine the interest rate level. Specifically, interest rate marketization means that the central bank adjusts the benchmark interest rate according to the needs of monetary policy, and all commercial banks independently adjust the deposit and loan interest rates according to the changes of supply and demand in the capital market, and finally form a multi-level interest rate operation mechanism oriented to the benchmark interest rate of the central bank, which can fully reflect the supply and demand of funds and reflect the intention of the central bank's monetary policy. Interest rate marketization emphasizes that interest rate truly reflects the relationship between capital cost and supply and demand, and exerts its economic leverage flexibly and effectively.