Study on the Impact of Interest Rate Marketization on Chinese Commercial Banks

Abstract

Interest rate marketization has had a far-reaching impact on China's commercial banking industry, promoting the improvement of banks' business innovation and risk management capabilities, while having a significant impact on banks' profitability models and asset-liability structures. Commercial banks must adapt to the market-based interest rate system, optimize resource allocation and improve service quality to meet the challenges brought by interest rate fluctuations. Interest rate marketization also promotes the deepening development of the financial market, enhances the transmission efficiency of monetary policy, and has a non-negligible role in the stability and efficiency of the entire economic system. This paper analyzes the meaning of interest rate marketization, the characteristics of China's interest rate marketization, and discusses its impact on China's commercial banks, and finally puts forward corresponding development countermeasures to guide the development of banking business and improve financial regulatory policies.