A Study On The Profit Model Of China 's Commercial Banks Under The Marketization Of Interest Rate

With the development of China’s capital market and the deepening ofmarket-oriented interest rate reform, especially since July20,2013, thefull liberalization of the lending rate market, traditional profit modelof commercial banks in China will be faced with great pressure. Thecommercial banks traditional profit model don’t possess the capabilityfor sustainable development after implementing interest-ratemarketization, this makes the transformation of the commercial banksprofit model is particularly urgent.First, this paper on the basis of the connotation studies aboutinterest rate marketization and the commercial banks profit model, citedpresent profit pattern of the commercial banks, also analyzed the effectabout the interest rate marketization in commercial banks profit modeland other influential factors of the commercial banks profit model.Secondly, thought analyzes the experience developed and developing areasof Bank’s Development, point out what we can learn. Thirdly, analyzesthe profit mode status quo of16listed commercial banks in China, foundthat our country commercial bank in the past few years has been graduallyreduced interest share of revenue from the business income, but there willbe more problem. Finally, selects financial data of11listed banks asa sample of the fourth quarter of2008to the third quarter of2013anddoing regression analysis with Eviews7.0, by analyzing the deeperunderstanding to the effect about the proportion intermediate businessincome and bank assets in banks’ return on assets.In end, it draws some conclusions and policy recommendations. Theconclusions are as follows. Interest rate marketization will greatlyreduce the interest income of commercial bank; the proportionnon-interest income of commercial Banks showing a rising trend; at presentour country commercial bank risk management ability is insufficient; theeffect about the proportion intermediate business income in banks’return on assets is positive; the effect about bank assets in the differentnature of banks return on assets are not the same. The policyrecommendations are as follows. Value the traditional net interest income,innovative the deposit products; to develop the non-interest business and the diversification of income resource; attach great importance to theascension of risk management capabilities; the direction of thetransformation of different types of commercial banks should be differentin China.