The Analysis Of Profitability Of Chinese Commercial Bank Under The Policy Of Interest Rate Liberalization

With the development of interest rate liberalization, Chinese finance industry has been strongly influenced. As the main supplier of financing, operation revenue of commercial bank are most from net interest income. The gradual liberation of market interest has great impact on the traditional business model. In order to study the problems of profit model of Chinese commercial bank, the main factors that affect earning power and the future prospect of Chinese commercial bank based on the background of interest rate liberalization. We take three Chinese bank, bank of china(BOC)e, China Merchants Bank(CMBC) and Bank of Nanjing(NJCB), as the cases to analyze in this paper.First of all, we analyze financial records of 16 stock-listed commercial bank with the method of regression analysis by Eviews. Second, we compare the variation of business structure and the total amount of net interest income and non-interest income among BOC, CMBC and NJCB to analyze earning performance within recent 5 years. So we can research the main factors of earning power. Finally, we provide some reasonable suggestions and requirements to reform the earning model through the analysis we obtained.