Marketization Of Interest Rates And Significant Adjustment In The Pattern Of Interest In Domestic Financial Markets.

Here world clothing shoes The Xiaobian of the hat net tells us that interest rate marketization will weaken the plundering of the wealth of the people.

Recently, President Zhou Xiaochuan has publicly stated that the marketization of interest rates in China can be achieved within 2 years. That is to say, in 2 years, China's financial market will distort the price and the effective price mechanism will be gradually formed. If so, the domestic financial market will have a major adjustment in the pattern of interests. And this will have a huge impact on the lives of the general public.

Because interest rate is the price of the financial market, its change is actually a major interest relationship adjustment, especially when the price of a controlled market is adjusted to the market, this interest relationship adjustment will be greater. That is to say, under the condition that interest rate is controlled, government power will often become the profit distribution mechanism of financial market. For example, the interest rate of the current financial market is 5%, while the interest rate controlled by the government is 2%, so the interest of 3% is to transfer wealth by such regulation. If the deposit of the residents is 40 trillion, if the interests of 1% are transferred, then the people will be robbed of 100 billion of their wealth in one year.

This is why domestic economic growth has slowed down in recent years, and most enterprises have regressed. In 2013, the total net profit of more than 2500 listed companies in the domestic stock market was 2 trillion and 250 billion yuan, but the total profits of more than 10 banks reached 1 trillion and 160 billion yuan, accounting for half of the profits of the listed companies. The marketization of interest rate is the transformation from the government power to the profit distribution relationship of the financial market in the past. The power of the government is concentrated on the hands of a few people, and the market is for everyone to vote with their feet based on price mechanism. The two operation mechanisms are different, and their interest relations are naturally different.

From the current situation of China's financial market, although the market is determined by the price or interest rate in determining the allocation of financial resources, where does this interest rate come from? Who decides it? But it is quite different from the mature market. For example, in July 2013, the central bank announced the abolition of the lower limit of 0.7 times the loan interest rate of financial institutions, and no longer set the upper limit on lending rates for rural credit cooperatives. It seems that domestic bank lending rates are basically marketization, and the interest rate marketization of China's financial market is only one step away. That is, as long as the government liberalized the deposit interest rate of banks.

Because at present, in the financial market, after the loan interest rate is put into full play, only the deposit interest rate is still strictly controlled by the government, that is, the upper limit of the floating rate of the interest rate of the financial institutions at present is only 1.1 times that of the benchmark interest rate. However, under the current economic conditions in China, it is precisely because of the government's interest rate control on bank deposits that the domestic interest rate is controlled. financial market The price mechanism is still very distorted, and the effective market price mechanism can not be formed. The interest pattern of the whole financial mechanism is only tilted towards commercial banks, which is not conducive to the general public or the interests of the majority of the depositors.

Because for commercial banks, loan interest rate is its income, while deposit interest rate is its cost, deposit interest rate is the most important constraint condition of commercial banks. That is to say, if the lending rate is completely liberalized and the interest rate of the deposit is not released, it means that the bank's income will be completely liberalized without being constrained by rising costs. In this way, bank loans can not only seek high risk projects, but also abandon the responsibility of quasi public nature of domestic banks. Such a lending rate liberalization is certainly a great benefit to banks. Especially in the current situation of China's real estate profits and credit starvation, the advantages outweigh the disadvantages.

The deposit interest rate is the cost of the bank. If the loan interest rate is released and the deposit interest rate is not released, it will mean that the bank's income will increase but the cost will not rise. It also means that the government can transfer the interests of the depositors to the banks or enterprises through regulation. If there are no other market factors to break this pattern, it will become the biggest obstacle to the marketization of China's financial interest rate. Because neither the government nor the bank is willing to give up its own interests.

It can be seen that the interest rate on deposit is artificially depressed by the way of government regulation, which is absolutely a good thing for banks. Banks can absorb deposits at lower cost and lend them at high interest rates. The broad masses of the public interest rate deposits or wealth is transferred or virtually robbed in the process. The step of interest rate liberalization is certainly not so easy. Don't mention it for 2 years. The longest time will not help. However, whether it is the explosive growth of domestic Internet finance or the appearance of shadow banking, the market is breaking through the government's interest rate control through various ways.

According to the statistics of the China Banking Regulatory Commission, the net interest margin of domestic commercial banks in the first quarter of this year is 2.58%, which has narrowed significantly compared with 2.68% at the end of 2013 and 2.75% at the end of 2012. This narrowing of interest spreads is related to the emergence of Internet high interest money funds and financial products over the past year. Among them, Alibaba's balance treasure, once attracted 6% yuan of interest, attracted nearly 600 billion yuan of deposits, thus making bank deposits large losses in the first quarter of this year. Under such circumstances, commercial banks can not sit and wait for death. In addition to raising interest rates to the upper limit, they also introduce various kinds of high interest monetary funds and financial products. Interest rate liberalization should also be pushed forward.

More importantly, these factors not only caused a great impact on banks, but also aroused the awakening of the public and investors. In the past, the majority of people could only accept the low interest rates of banks in silence, and could only be willing to be robbed of their wealth. But through the balance of treasure, the general public began to feel that the deposit interest rate should have been so low. This is entirely the result of government regulation, which greatly caused the public to be very unhappy with the interest rate control, and demanded a high rate of marketization of interest rates. Under such circumstances, President Zhou Xiaochuan believed that the pace of marketization of interest rates in China should be accelerated.

With the marketization of real interest rates, the operation mechanism of the whole market will undergo fundamental changes. Interest rates are not determined by the government's brains. Instead of controlling the interests of the public through government control, the general public is pricing their banks' risks and benefits according to their own information and knowledge. Make your own interests. Under such circumstances, because of fierce competition in the market, not only will deposit interest rates rise gradually, but also the fundamental changes will take place in the whole financial market and interest pattern. If a bank wants to harm the interests of the people, the people can vote with their feet to withdraw from the bank.

Under such circumstances, the profiteering of the banking industry will come to an end. In order to develop the banking industry, we should not only give profits to the people and enterprises, but also improve the quality of their services and carry out more value-added services. Otherwise, if they are eliminated in the fierce market competition, the large banks may also lose their advantages gradually. The majority of the public or investors become the leading force in the whole financial market. It can be seen that only by speeding up the marketization of interest rate in China can people enjoy more interests in the financial market, so that the interests of the public can not be plundered. However, precisely because interest rate liberalization is an important adjustment of interest relations, it is not easy for the government to take this step. That is to say, under the current financial market conditions, China's Interest rate liberalization It is not easy to achieve in 2 years.