Research Of The Influence Of Interest Rate Liberalization On Commercial Banks Of China

After the financial crisis,great changes have taken place in the development pattern of the world financial market,impact on the economic development of all countries.In the past few decades,financial liberalization has been the main trend,many developed countries and developing countries have completed the reform of interest rate liberalization,it has had a great impact on the financial industry of all countries.The reform of China's interest rate liberalization began in 1996,central bank liberalized interbank lending rate,it marks the formal start of the reform of interest rate liberalization,by October 2015,the central bank removed the cap on deposit rate,the reform of interest rate liberalization has made decisive progress,it has lasted for nearly 20 years,it has a great impact on China's financial industry,especially the banking industry.Under the interest rate liberalization,competition between financial institutions is increasingly fierce,under the impact of financial disintermediation and the internet finance,the borrower's investment and financing channels are more extensive,the deposit and loan spreads are further narrowed,in a certain degree,the profitability,risk and business transformation of commercial banks have a great impact.In this case,how do commercial banks deal with the influence of interest rate liberalization,it is related to the economic lifeline of China and the financial stability of China,it is of great significance to the sustainable development of China's finance.Based on this,this paper focuses on the influence of interest rate liberalization on commercial banks,it also puts forward the suggestions of further promoting the reform of interest rate liberalization,the countermeasures of commercial banks and the future prospect.In the process of interest rate liberalization,the influence and degree of influence on commercial banks are studied,to be able to verify the original intention of the reform of interest rate liberalization,what needs to be done to achieve the goal of reform,Therefore,we can find the obstacles to reform and put forward countermeasures,at the same time,it proposes feasible suggestions for the further development of interest rate liberalization,and points out the path of sustainable development for commercial banks.This paper uses the combination of theory and practice analysis,the combination of qualitative and quantitative analysis,and the combination of comparison and comprehensive analysis,it mainly analyzes the influence of interest rate liberalization on the profitability,risk and business transformation of commercial banks in China.The main contents are as follows:The first chapter is the introduction.Firstly,this paper introduces the background of topic selection and puts forward the research question of this paper.Secondly,the definition of relevant concepts and research significance,including theoretical and practical significance;In addition,the research content,method and technical route of the thesis are introduced.Finally,points out the innovation points and shortcomings of the research.The second chapter is about the theory of interest rate liberalization and literature review,the theory of interest rate decision theory,interest rate transmission theory and financial development theory have been elaborated successively,at the same time,the necessity and path of interest rate liberalization reform and the influence of commercial banks are analyzed respectively in foreign and domestic perspectives,this paper provides theoretical basis for further detailed analysis of this paper.The third chapter gives an overview of the influence of interest rate liberalization on commercial banks.Firstly,this paper introduces the development course of interest rate liberalization in China and the comment from different perspectives.Secondly,the influence of interest rate liberalization on assets business,liabilities business and intermediate business of commercial banks is discussed from the perspective of favorable influence and negative influence.Finally,this paper compares the influence of interest rate liberalization on different types of commercial banks from different perspectives.Chapters 4 to 6 are the core chapters of this article.The fourth chapter analyzes the profitability impact of interest rate liberalization on China's commercial banks.First,this paper analyzed about the present situation of commercial banks profitability,collected the related data of 16 listed banks in China,the selection of measure of commercial banks profitability analysis according to different types of commercial banks;Second,the relevant theories of commercial bank profitability is described in this paper,namely,new institutional economics,corporate governance,synergy theory and financial sustainable development theory,for this article puts forward suggestions for the commercial banks to deal with the interest rate liberalization to provide theory support,In addition,this paper analyzes the influence mechanism of interest rate liberalization on the profitability of commercial banks,and puts forward the research hypothesis.Finally,this paper makes an empirical analysis on the impact of interest rate liberalization on the profitability of commercial banks in China,this paper uses the panel data of 16 Chinese listed commercial banks for 2007-2016 years,distinguish the whole,the large commercial banks and the small and medium commercial banks,select the return on total assets as the explained variable,the net interest margin is used as the explanatory variable and the individual characteristic variables of the bank and the macroeconomic variables as the control variables.The measurement model of the impact of interest rate liberalization on the profitability of China's commercial banks is constructed.The result of the research is that the interest rate liberalization leads to narrow net interest margin,which has a certain impact on the profitability of China's commercial banks.At the same time,interest rate liberalization affects the profitability of large commercial banks more than small and medium-sized commercial banks.The fifth chapter analyzes the risk impact of interest rate liberalization on China's commercial banks.Firstly,this paper analyzes the risk status of commercial banks in China by collecting relevant data of bank risk indicators,and compares the risk status of different types of commercial banks.Secondly,this paper explains the credit risk,interest rate risk and liquidity risk faced by commercial banks in interest rate liberalization,and puts forward the research hypothesis.Finally,through empirical analysis of the impact of interest rate liberalization on the risk of commercial banks in China,this paper builds a panel data model with similar research methods in chapter 4.The Z-SCORE ratio of the indicators of the risk of bank failure and non-performing loan ratio(NPL)of the credit risk index are selected as the explained variable.The net interest margin is still the explanatory variable,the result of the study is that the effect of interest rate liberalization on the bankruptcy of large commercial banks is not obvious,but it will increase the risk of bankruptcy of small and medium-sized commercial banks.Interest rate liberalization increases the credit risk of commercial banks,while interest rate liberalization affects the credit risk of large commercial banks more than small and medium-sized commercial banks.The sixth chapter analyzes the impact of interest rate liberalization on the business transformation of China's commercial banks.First of all,this paper analyzes the current situation of business transformation of China's commercial banks through assets,liabilities and intermediary business.Secondly,this paper expounds the theoretical basis of the business transformation of commercial banks,namely,the theory of assets and liabilities management,differentiation strategy theory and financial innovation theory,and puts forward the research hypothesis;Finally,the article adopts the method of similar to the first two chapters study,empirical analysis of interest rate liberalization of China's commercial banks business transformation,selection in the percentage of net interest income and the top 10 loan client is accounted for as the explained variable,net interest margin as explanatory variables,panel data model is set up,the conclusion for the interest rate liberalization of commercial banks business transformation to produce the effect of two aspects: on the one hand,commercial banks will be promoted to develop the intermediary business vigorously,on the other hand,commercial banks will increase loans to small and medium-sized enterprises to help small and medium-sized enterprises develop.In general,the effect of interest rate liberalization on the business transformation of large commercial banks is higher than that of small and medium-sized commercial banks.The seventh chapter is the conclusion and prospect.This paper puts forward some Suggestions for commercial banks to deal with interest rate liberalization,including: the first is to define clearly and differentiate the development path;Second,accelerate the transition to intensive light banking;Third,we should deal with the relationship between innovation and risk and enhance the overall risk management capacity.