A Study On The Impact Of Interest Rate Marketization On China 's Commercial Banks

With the rapid development of China’s economy in recent years, the development of other banks and the economy of our country, in recent years the profitability and competitiveness of rapid increase, China’s banks also occupy the position play a decisive role in the world. Since 2012, China’s market-oriented interest rate process continues to accelerate, has two times the deposit, loan interest rate easing floating in space, especially opened 2013 June deposit interest rate floating space is realized in the process of interest rate liberalization qualitative leap, this also means that, stable spreads enjoy Chinese banks have long gradually began to be touched by the reform. At the same time, with the development of Internet, the financial deepening and financial disintermediation, be just unfolding all kinds of money market funds, in the monetary and financial environment the cost of capital has up trend, the bank stress seems to be growing. Commercial banks as the main body of financial system in China, can withstand the deepening of the reform of the financial system test, whether under the background of interest rate liberalization withstand the pressure from all sides and impact and continue to maintain a good development and create greater glories, more and more people become concerned about.At present, interest income is still China’s commercial banks the main source of income, for most banks, interest income accounted for the total business income is still more than 80%, this shows that any impact on interest income thing on our banks are very important. At the same time, the marketization of interest rate will directly affect the interest margin, net interest margin of fluctuation and bring. Therefore, in the interest rate market conditions, factors influencing the profitability of commercial banks in China, come very naturally to change in order to explore the factors effect on the net interest margin of Chinese commercial banks.This paper makes an empirical analysis on China’s commercial banks static gap, and a measure of commercial bank interest rate risk index, and for the first time applied to the analysis of the determinants of net interest margin. Results showed that, the level of management, credit risk, liquidity risk and interest rate risk of Chinese Commercial Bank net interest margin has a significant impact, in addition, the concentration degree of market and macroeconomic variables also has a significant effect on the net interest margin. Finally, this paper presents the corresponding policy recommendations on China’s response to the commercial bank interest rate liberalization.