Interest Rates And Reserve Policy Changes In China’s Banking Business Performance

In recent years, according to China’s domestic economic situation and mutationof the foreign economic environment, the People’s Bank of China continued tocontrol monetary policy, as one of the monetary policy transmission intermediary,commercial banks have played a very important role for the effective of the naturalmonetary policy regulation, however, in the implementation of relevant policies, thecentral bank generally focuses on the macro-control and overlook the change in thepolicy transmission easily,in the domestic and foreign scholars in this area ofresearch is relatively small too, especially for empirical research about commercialbanks conditions’s change due to interest rate and deposit reserve policy regulation isalmost in a poor state, so this paper is to explore the impact that the interest rate anddeposit reserve policy’s changes have on the performance of listed commercial banksin empirical analysis, this would have important practical significance for guidingthe behavior of the central bank and commercial banks.This article is based on16listed commercial banks as samples in both Shanghaiand Shenzhen in China between the first quarter of2002to the third quarter of2010,commercial banks of different ownership are tesed by constructing a series ofmodels in Eviews software.Through this research, the last leads to the conclusionthat current and lagged changes in interest rate and deposit reserve policy will have asignificant impact on the bank’s operating performance, and interest rate and depositreserve policy’s changes have different impact on the state-controlled commercialbanks and joint-stock commercial bank, according to empirical results, and that canalso show that as the external factors macro-policy factors would also be a greaterdegree of the operating conditions of the bank except for its own internalfactors,Finally, from the regulators and commercial banks’s point of view, therewould be a series of recommendations, including the diversity of regulation andcontrol policies, improvement of the corporate governance,and so on.