The Study Of Bank's Pricing Behaviors And Risky Behaviors Based On Net Interest Margin

As the liberalization of interest rate, China's commercial banks facing the uncertainty of a variety of environmental factors increased. Commercial banks conduct increasingly complex,and affected by external environment factors such as macroeconomic conditions,policy arrangements,the economic cycle and other aspects. As the core of a country's financial system, the impact of banks' behavior on the finance and economy is very far-reaching.Studying the impact of liberalization of interest rate on banks' behavior has great significance to improve the market competitiveness of commercial banks and steadily promote the interest rate reform. Commercial banks net interest margin is the result of the bank s' behavior, reflecting the commercial banks' operating results and management level. Due to the behavior of the banks include content in the extremely broad, and can not be quantified, therefore it can only be studied by analyzing the influence of factors on net interest margin.Environmental factors will affect bank behavior and thus affect its net interest margin, and net interest margin reflects the behavior of banks. Since the net interest margin mainly reflects the pricing behavior and risky behavior of banks, so this article focuses on these two types of bank behaviors.This paper analyzes China's year 2005 to year 2012, 49 representative Bank, and classify them to state-owned banks, national joint-stock banks and city commercial banks to compared banks' behavior when facing of changes in the interest rate environment. The empirical research is divided into two chapters,pricing behavior and risky behavior: The first thing to do is to separate Pure margin under the Dealer's model, then establish the empirical decision factors model of Pure margin to analysis and compare the difference in banks' pricing behavior at different stages of gradual marketization of interest rates or in the different types of bank;and then use different Dealer's model to calculate the credit risk premium,thus analyze the difference in risky behavior of different types of bank.Finally, we draw the main conclusions are:(1) With the advance interest rate marketization process, independent pricing power of China's commercial banks increased.Banks pay more and more attention to risk factors and non-traditional business factors, and less and less attention to cost and policy protective factors in the bank pricing process,which suggests the liberalization of interest rate made some achievements.(2) During the pricing process the three kinds of banks have advantages and disadvantages. The state-owned Banks rely too much on the policy protection rather than market when pricing the interest margin. Non-traditional business play a big role in the pricing process of joint-stock banks. The risk factors can be well reflected in the pricing spreads of city commercial banks, but they depend too much on cost factors.(3)State-owned banks' risk management and control is not strong. city commercial banks' credit risk management is relatively perfect, but its credit risk premium for the unit is too low.