The main significance of interest rate marketization is to promote financial innovation. Financial market players are full and competitive, and all economic players will benefit from innovation.

From the microscopic point of view, after interest rate marketization, it can improve the interest rate elasticity of capital demand, rationalize and benefit the capital flow, eliminate the discrimination of ownership, department and industry of interest rate as a whole, make interest rate fully reflect the supply and demand of funds, and make the level and structure of interest rate closely related to credit risk. Macroscopically, the market-oriented interest rate plays an irreplaceable role in mobilizing savings and transforming savings into investment.

the process of interest rate marketization is essentially a process of cultivating the transformation of financial market from low level to high level, and finally forming a perfect financial market: the financing instruments are complete in variety and reasonable in structure; The information disclosure system is adequate; A supervision system endow with legal and economic means; At the same time, the marketization of interest rate will be beneficial to the formation of the indirect regulation mechanism of the central bank on the financial market and play a vital role in perfecting the financial system.

1. requirements of market economy

the development of market economy requires the liberalization of commodity prices, and interest rates, as a special commodity, must also be liberalized. This is the need of market competition and the objective requirement of market economic system.

2. It is also necessary for banks to improve their management level to liberalize interest rates.

Because if interest rates are not liberalized, the interest rates of banks will be similar. In this way, competition will not be sufficient, and the development of banks will be difficult to achieve survival of the fittest, which is equivalent to protecting backwardness. After the interest rate is liberalized, banks will face great pressure from the competition of deposit and loan interest rates. At this time, if banks do not improve their management level and service quality, their profit level will be low, and banks will be at a disadvantage in the competition of deposit and loan interest rates. By then, banks with high profit levels can attract borrowers by raising deposit interest rates and lowering loan interest rates; A bank with a low profit level will be in a dilemma. If it also adopts the methods of raising the deposit interest rate and lowering the loan interest rate, it will be difficult to survive because there is no profit support. If the deposit and loan interest rates remain unchanged, it will lose customers.

3. Customers can get better service

After the interest rate is liberalized, the competition among financial institutions will enable customers to get more favorable prices and better services.

Contents of interest rate marketization

Generally speaking, interest rate marketization includes two contents: one is the marketization of deposit and loan interest rates of commercial banks; Second, the central bank influences the market interest rate through indirect regulation.

1. Marketization of deposit and loan interest rates of commercial banks.

under the market interest rate system, commercial banks are the makers and executors of interest rates. According to the market interest rate represented by interbank lending rate, the bank's capital demand, the maturity structure of assets and liabilities, the matching of cost structure and risk structure and other factors, commercial banks flexibly adjust their interest rate policies to achieve the purpose of reducing costs, reducing risks and striving for maximum profits.

as far as the determination of deposit interest rate is concerned, the deposit interest rate of commercial banks should be completely determined by the banks themselves. Implement the method of keeping an eye on the fluctuation of interbank lending rate. Commercial banks, in combination with their position and competitive advantages in the local market, analyze the bank's capital demand according to the matching of the bank's asset-liability term structure, cost structure and risk structure every day, determine the floating range on the basis of interbank lending rate, and adjust and formulate the specific interest rate levels of the bank's deposits in various term grades. Generally, the interest rate of large and long-term deposits is close to or the same as the interbank lending rate, and it is higher than the interbank lending rate in special periods; The interest rate of small and short-term deposits is lower than the interbank lending rate.

from the determination of loan interest rates, the loan interest rates of commercial banks should fluctuate around the basic interest rate within the upper and lower limits stipulated by the central bank. The floating range of commercial banks is generally determined according to the changing trend of interbank lending rate, loan quality, term, risk, the development prospect of the invested industry and the credit relationship with customers.

2. The central bank indirectly regulates interest rates.

under the market interest rate system, the central bank does not directly manage all the interest rates of commercial banks, but implements indirect control policies, and commercial banks decide their own interest rates. However, in order to prevent large commercial banks from taking advantage of their monopoly position to undermine the orderly and balanced operation of market interest rates, the central bank should retain the window guidance right to the upper limit of deposit interest rate, basic loan interest rate or the best loan interest rate. At the same time, the central bank indirectly regulates the supply and demand of money in the money market through refinancing, rediscounting and open market operations, and regulates the interbank lending rate, thus affecting the deposit and loan interest rates of commercial banks.

the central bank should always analyze the changes of interbank lending rate and its reasons, and at the same time analyze the development trend of other objective economic and financial situations, predict the changes of market interest rate and money supply, and check whether it meets the needs of monetary policy. The central bank should formulate interest rate control strategies in advance and in time for possible development trends that do not meet the monetary policy objectives. Because the interest rate policy has signal function and hysteresis effect, and it is also a lever of indirect regulation, therefore, the central bank should adjust the benchmark interest rate several times, guide the flow of social funds, and regulate the interbank lending rate, thus affecting various interest rates in the whole society.