The Analyze Of Income Structure Adjustment Of State-owned Banks Under Liberalization Of Interest Rate

With economy’s stability and the reform of monetary system’s steady advance and continuous deepening, the central bank of china decided to liberalize financial institutions’ lending rates which means allowing them to determine the lending rate independently by cancelling financial institutions’ lending rate floor, 70 percent of the benchmark lending rate. This move is an important step in China’s liberalization of interest rate. Intermediary business, which together with assets business and loan business construct the troika business of commercial bank have been paid more and more attention. Commercial banks have to improve their business structure and expand their intermediary business. As the revenue structure and profit model of commercial banks have been a heated topic, commercial banks are innovating to seize the intermediary business market with their strengths.First,this paper summarizes related documentation on commercial banks’ revenue structure adjustment under the background of interest rate liberalization,concluding the chance and challenges under this background. In addition, to figure out the relation between domestic commercial banks’ ability of profitability and development of intermediary business,this paper includes results of related empirical researches. Secondly, this paper analyzes the annual report of Bank of China 2008-2013 to study the current development of intermediary business and revenue structure’s adjustment with the liberalization of interest rate.Furthermore, comparison with 4 other state-owned bank( Industrial and Commercial Bank of China, China Construction Bank, Agriculture Bank of China and Bank of Communication) in intermediary business will be made to acquire BOC’s advantages on the intermediary business and problems on its current revenue structure and profit mode and made responsive suggestion. Quantitative and qualitative analysis on domestic commercial banks’ intermediary business development. Theoritical basis of commercial banks’ development on intermediary business and revenue structure adjustment is intergrated with the example of Bank of China.This paper explain the stress of transformation under the liberalization of interest rate domestic commercial banks and provide references on intermediary business devlopment strategy. This paper have siginificance on differentiation competition,improvement on profitability and comprehensive competitiveness.