Research On The Factors Of Large Commercial Bank Deposits Interest Rate Pricing In China

It’s the most important for the interest rate marketization step to gradually realize the market deposit rates. The rules of "guiding opinions on financial support for economic restructuring, transformation and upgrading" show that we should steadily promote market-oriented interest rate reform, and pay attention to the basic role of market in the allocation, so China has gradually accelerate the process of marketization of interest rates. And Free Trade Zone and the internet finical promote the interest rate marketization. However, at present, China is still in the primary stage of market deposit rates, so the large commercial banks should act as the pioneer to establish the deposit interest rate pricing system in the reform. We must clarify the factors on the deposit interest rate pricing, in order to provide the large commercial banks some good ideas to increase deposit pricing ability.By reading lots of domestic and foreign literatures, this paper regards the financial repression theory and the financial deepening theory, control of interest rate and interest rate marketization as the theoretical basis, and regards the deposit interest rate pricing method as a reference. Thinking of the difficult to obtain sample data, this paper regards the state-owned national banks and joint-stock banks as the research object, then show the necessity to research the large commercial banks by Stark Berg game model. Then the conclusion shows that the size of the market, the market share of bank deposits, the ratio of intermediary business income, the proportion of non-performing loans, bank scale and profitability are inversely related to the deposit interest rate floating range through the SPSS. In addition, the conclusion is still valid to the local banks or the all banks. The results show that:(1) the large commercial Banks deposit floating range is negatively correlated with the size of the market and the bank market share. (2) the large commercial Banks deposit floating range is negatively correlated with the intermediate business income and non-performing loans ratio. (3) when the bank assets reaches a certain size, large commercial Banks will have economies of scale. (4) Deposit rate variations in the highly profitable Banks are less than that in the low profit bank.Finally, through the study of the characteristics of the USA deposit interest market, it is concluded that intermediary business should be developed and pricing ability should be innovated. The empirical analysis offer a new idea in the field for the future research, which is of great practical significance.The innovation of this paper:This paper defines two dummy variables (including the bank profitability and scale of bank assets), analyses the data of deposit interest rate from June 8,2012, regards the deposit interest rate floating range as the explanatory variable, and then expand the object, and analyses the factors on deposit interest rate pricing of national commercial banks and local commercial banks.