Determintants Of Listing Commercial Banks Net Intrest Margin In China

Net interest margins is the lifeblood of commercial banks. High level of profitability offinancial companies especially the banking, caused widespread concern of the whole society.Combined with China’s actual situation and selected the appropriate economic indicators ofthe date of2004to2012, we analysis and examine the net interest margin’s determinants ofBank of China, Agricultural Bank of China, ICBC, China Construction Bank and other12listed commercial banks. We have established individual fixed effects regression model toidentify the extent of the most influential factors.This paper is divided into four parts. The first part introduces the background andsignificance of the impact factors of commercial banks net interest margin, current research,writing ideas and methods and the innovation of this article. The second part describes thetheoretical analysis. Including the definition and structure of net interest margin, thetheoretical model, the major theory of commercial banks net interest margin determinants andsome related theories. The third part is the most important chapter in this article. In order toget the valid regression results and establish individual fixed effects regression model andmake some conclusions. we use sample data and select the appropriate economic indicatorsthat suitable for our situation to analysis through the Panel Data model. The fourth part isconclusion,Some policy recommendations is given based on the results of the study as well asdeficiencies and prospects at the end of the paper. Through this study, we draw the followingconclusions: The determinants of net interest margin including the degree of risk aversion,credit risk, management level, the average operating level, asset size, the opportunity cost ofreserves, the size of bank assets, inflation rate, GDP, core capital, non-spread income, poorbenchmark, market concentration, the rate of non-performing loans and net interest margin inthe previous year.