The Impact Effect Research Of Interest Rate Market On Small And Medium Sized Commercial Bank Profitability

With the rapid development of the market interest rates, profit margins of the disparity for rates is continuing to be compressed and profit model has been a great impact. However, over-reliance on small and medium sized commercial bank deposit interest is bring about that they have to face even greater impact and challenges. Small and medium commercial bank demands professional work transformation and looking for new interest point.Firstly, from the characteristics of the operating activities and connotations of the impact, ROE can accurately reflect the profit ability of business activities. We card the shock mechanism and build the mould. Secondly, in case of Pudong Bank, we measure the impact of market interest rate effect on the profitability of commercial banks. Finally, we propose relevant suggestion about improving profitability.In short, deposit and lending rates and profitability have relations. Simultaneously, its size and business structure, the economic environment, risk management affect profitability. Deposit ratio influenced the degree of profitability deeply. So we can draw a reasonable conclusion and improve the right advice.