The impact of interest rate marketization on bank operation includes:
1. Let finance better support entities.
The differential interest rate strategy adopted by financial institutions can reduce the financing cost of enterprises, improve the level of financial services and increase the support of financial institutions to enterprises, especially small and medium-sized enterprises.
2. Improve the profitability of financial institutions.
After the marketization of loan interest rate, some financial institutions may raise the loan interest rate, so they can get more loan interest income and increase the profitability of banks.
3. Improve credit quality.
After the marketization of loan interest rate, financial institutions will create more income for high-quality customers, while those with low quality will lose income, and those with high risk and low credibility will withdraw from the credit market.
4. Attract idle funds more effectively.
Marketization of interest rates or timely and orderly liberalization of deposit interest rates can attract idle funds more effectively and make good use of idle funds in society.
5. Promote the deposit insurance system.
After the marketization of interest rates, the competition among commercial banks will be strengthened, and some banks may face new risks. In order to maintain the stability of the whole market, the deposit insurance system will be promoted.
6. Promote the further improvement of rural financial services.
Rural credit cooperatives are the main force of rural financial services, and no longer set a ceiling on the loan interest rate of rural credit cooperatives, which is conducive to the independent pricing of rural credit cooperatives, unifying the loan interest rate policies of various financial institutions, creating a fairer competitive environment, exerting price leverage, continuously optimizing resource allocation, and promoting further innovation and improvement of rural financial services. 7. Accelerate the marketization of bank upgrade interest rates, asset pricing will be more transparent, the spread of commercial banks will be conducive to competition, the pressure of business model transformation will increase, the transformation of traditional banking business to investment banking and wealth management will be accelerated, and banks will be further upgraded.