Zhou Xiaochuan: Interest Rate Marketization Reform Should Be Promoted As A Whole.

Yesterday, the central bank website published last month the governor of the central bank. Zhou Xiao Sichuan Speech at the financial annual meeting. Zhou Xiaochuan said that under the thought of delimiting the scope, providing incentives and strengthening self-discipline, Interest rate marketization reform Move forward.

He also said that in general, the market-oriented reform of interest rates should be promoted as a whole. In the interest rate liberalization, the pricing power of a series of upstream and downstream products and alternative products should also be determined by the market at the same time.

In China, the reform of interest rate marketization has been going on for several years. This Zhou Xiaochuan's statement is undoubtedly a signal of acceleration.

China's interest rate liberalization started earlier, and the central bank has done a lot of decentralization. At present, interest rates in the money market and bond market have basically been liberalized. However, the marketization of the most basic and important deposit interest rate has not yet been liberalized, and most of the achievements have been achieved several years ago.

"Almost all large and medium-sized commercial banks have not only replenish capital, but also become a listed company, and corporate governance has also been greatly improved." Zhou Xiaochuan said that in 2010, after the listing of Agricultural Bank of China and Everbright Bank, the financial restructuring and shareholding system reform of commercial banks achieved phased results, which laid an important foundation for advancing the next round of market-oriented interest rate reform.

When describing the path of marketization of interest rates, Zhou Xiaochuan also said that financial institutions with hard constraints should be selected to make pricing in competitive markets and exclude financial soft constraints to a certain extent.

"Marketization reform in China has stressed the importance of respecting the autonomy of enterprises from the very beginning, and the most important one is respect for the pricing power of enterprises." At the same time, Zhou Xiaochuan also believes that the right to choose customers should also be reflected. Customers of residents, enterprises and other banks have the right to choose in the market. They can choose different financial service enterprises and products with different prices.

"Commercial banks should be willing to take responsibility for risk pricing." Zhou Xiaochuan also stressed that commercial banks should make independent judgments on the risk premium and determine the price. In response to possible problems, he also warned against excessive cross subsidization of bank products.