International Journal of Science and Research (IJSR)

International Journal of Science and Research (IJSR)
Since Year 2012 | Open Access | Fully Refereed | Peer Reviewed

ISSN: 2319-7064




Downloads: 102

Research Paper | Economics & Management | China | Volume 8 Issue 7, July 2019


Research on the Impact of Interest Rate Marketization on Risk Bearing of Commercial Banks

Li Chaonan


Abstract: Based on the elaborating of the interest rate marketization process and the risk influencing factors, this paper empirically studies the impact of interest rate marketization on risk-taking. In this paper, 30 banks including state-owned banks, joint-stock banks and city commercial banks are selected as samples. Using the micro-data of 130 commercial banks in China from 2004 to 2015, the dynamic panel model by System GMM Estimation is analyzed by regression analysis. The study shows that the liberalization of loan interest rate decreases the banks? risk-taking, and the liberalization of deposit interest rate increases the bank's risk-taking. Overall, it shows a downward trend and then a rising trend. Bank risk is negatively related to the size of assets and return on assets; and it negatively related to economic growth and positively related to monetary policy. Finally, from the perspective of banks and regulators, this paper proposes suggestions to copy with the risk of interest rate liberalization.


Keywords: Interest rate liberalization, Risk-taking, Dynamic panel model, GMM


Edition: Volume 8 Issue 7, July 2019,


Pages: 1545 - 1550

Research on the Impact of Interest Rate Marketization on Risk Bearing of Commercial Banks


How to Cite this Article?

Li Chaonan, "Research on the Impact of Interest Rate Marketization on Risk Bearing of Commercial Banks", International Journal of Science and Research (IJSR), https://www.ijsr.net/get_abstract.php?paper_id=23071902, Volume 8 Issue 7, July 2019, 1545 - 1550, #ijsrnet

How to Share this Article?

Enter Your Email Address




Similar Articles with Keyword 'rate'

Downloads: 1 | Weekly Hits: ⮙1 | Monthly Hits: ⮙1

Analysis Study Research Paper, Economics & Management, Indonesia, Volume 11 Issue 4, April 2022

Pages: 292 - 297

Impact of the COVID-19 Pandemic on Situ Bagendit Garut Tourist Destinations

Virly Cahyani | Naufaldi Imannudin Syakir | Wati Susilawati | Dini Turipanam Alamanda [4]

Share this Article

Downloads: 2

Research Paper, Economics & Management, India, Volume 10 Issue 10, October 2021

Pages: 1114 - 1120

Leadership Policy Response through COVID-19 Pandemic: A Comparative Study of Six Sought Economies of the World

Dr Mehraj Ud Din Shah

Share this Article


Top