The Research Of The Determinants Of Bank Net Interest Margin On China

Net Interest Margin can affect Micro-economic subjects'Management behavior,efficiency and the effect of macro-control. Under the circumstances of the interest rate marketing reform, The Research of the Determinants of Bank Net Interest Margin on China is of great significance in theory and practice. This paper Selectes indicators mainly on the basis of the theoretical models proposed by Maudos and Guevara(2004) and and the existing conditions of China. Based on panel data of 18 banks from 1998 to 2007, This paper mainly analyzes the Determinants of Bank Net Interest Margin on China from bank itself, Macro-economic environment and Financial Ecology. The result showed that (1)Factors affecting Net Interest Margin include The competitive structure of the markets factor, Average operating costs factor, Risk aversion factor, The credit risk factor. The opportunity cost of keeping reserves factor etc. Macro Economic Environment includes GDP and CPI.(2) State-owned banks , Joint-stock banks, City Commercial Bank's Factors affecting net interest margin are different: the influential factor of State-owned commercial banks net interest margin are Operating costs, Management Level, assets scale; the influential factor of Joint-stock banks net interest margin are Management Level, assets scale, Loan size, GDP growth rate; the influential factor of City Commercial Bank net interest margin are assets scale, GDP growth rate,CPI. Finally, the paper studies some difficult quantified factors - Financial Ecology.The empirical result not only for commercial banks to improve management level, but also for the relevant departments to formulate macro-economic policies to promote macroeconomic stability running positive significance.