The Research On The Impact Of Interest Rate Marketization On The Profitability Of Commercial Banks In China

June 28, 2015, the people’s Bank of China announced the sixth lower benchmark interest rates and Reserve interest rates, the benchmark interest rate is 2%, the benchmark interest rate is 4.85%, the interest rate market reform in China, the financial deepening gradually deepened, the industry is also increasingly fierce competition. During this period, the traditional business of China’s commercial banks is pushed down, and the traditional business is facing new competition and challenge. China’s commercial banks have to increase profitability to seek a new way out and strive to enhance the intermediate business income of low cost and high profit has become the major commercial banks have been "single plank bridge". From the international situation, the global multinational has carried out reforms, and in the process of the interest rate market reform has been subject to varying degrees of interest rate risk. Therefore, this paper is to study the impact of the factors which will be influenced by the interest rate market and the interest rate market.This paper reviews the related research literatures interest rate market and commercial bank profitability, overseas experience in the comparative interest rate market-oriented reform of the banking sector, market-oriented interest rate mechanism of the analysis of the profitability of commercial banks, and then learn from foreign banks experience the interest rate market-oriented reforms, mainly the status quo of China’s commercial banking business structure and profitability of the business and intermediate business spreads from two aspects, analyze the factors affecting the commercial banks. Further profitability of commercial banks empirical analysis, based on 16 listed banks in 2006 to 2014 financial data, different factors affecting the profitability of commercial banks was the panel regression analysis. In addition, through VAR model to analyze the interest rate market impact of China’s commercial banks of different sizes, the final combination of theoretical research and empirical analysis, draw conclusions and suggestions of this article.The innovation point of this paper is based on the business structure and profitability level, and the traditional methods of using financial analysis to distinguish between the two quantitative analysis methods using descriptive statistics and VAR model, and the latest bank financial data in the analysis. In the descriptive statistics, it focuses on the point of view of the profit growth point of the intermediate business income, taking into account the impact of macroeconomic variables and bank internal factors on the profitability of banks. In the VAR model, the empirical analysis of the overall listing of banks, state-owned large banks, joint-stock commercial banks were analyzed, and the difference between the two banks are subject to the impact of interest rate market is given a conclusion.The conclusion of this paper is that, in the process of interest rate marketization, China’s commercial banks’ profitability is mainly influenced by the factors such as money supply, domestic production and other macroeconomic variables, capital adequacy ratio, cost income ratio and so on. And our country commercial banks intermediate business income is still not high, the financial innovation and development is not balanced, mainly rely on traditional business. The empirical analysis of China’s commercial banks in the middle of the joint-stock commercial banks in the business of bank profitability is stronger than the state-owned banks, and state-owned banks to reform the adjustment time is longer. The countermeasure suggestion is that our commercial banks should optimize the allocation of resources, develop intermediate business, and also balance the traditional interest income, so as to improve the intermediate business income and enhance the differentiation level in the competition. In addition, risk control and preventive measures, grasp the characteristics of their own profit model, looking for the appropriate development of their own profit path.