A Study On The Factors Affecting The Net Interest Rate Of China 's Commercial Banks Under The Background Of Interest Rate Marketization

Starting from the Dealership Model, the paper summarized the influencing factors on the net interest margin of Chinese commercial banks empirically. Focusing on the balanced panel data of the 16 listed commercial banks from 2004 to 2014 in China, we inspect the influencing factors of net interest margin with multiple regression model, from the aspects of the banking industry itself and macroeconomic environment.From the regression results, we can draw the following conclusions:Because of long period of interest rate controls, the difference between deposit and lending benchmark rate is still the main factor affecting net interest margin. The size of credit expansion significantly increased the banks’ net interest margin income. The cost factor has been reflected in the net interest margin, which shows that Chinese commercial banks already have some capacity of cost management. However, default risk and interest rate risk have not been reflected in product pricing, indicating that the ability of risk management and risk pricing needs to be improved. In addition, off-balance sheet business and the capital adequacy ratio has not generated constraints on net interest margin.Finally, based on the findings above, the paper made some reasonable suggestions from the perspective of both commercial banks and macro-control policy.