The Research On The Impacts Of The Interest Rates Marketization On The Profit Model Of Commercial Bank In China

At present, the lower limit of RMB loans rate in our country has been fully liberalized, and the cap of RMB deposit rate has been adjusted to 1.5 times the benchmark rate. So it can be said that the degree of interest rates marketization in our country has reached a higher level than before. The interest rates marketization will have a strong impact on the financial market of our country. The commercial bank as an important part of China's financial market must face the impact and cope it. This paper focuses on the impacts of the interest rates marketization on the profit models of commercial banks in China, and then advises on the development of China's commercial banks in the future.First of all, this paper introduces the theories of the interest rates marketization and the profit models of commercial banks. Then, based on them, this paper analyses the impact of interest rates marketization on the profit models of commercial banks by establishing a game model between banks and concludes that the interest rates marketization will make the profits of some commercial banks which rely on the traditional interest income decrease. Therefore, the interest rates marketization will gradually affect the income structure and business structure of commercial banks and finally affect the profit models. Secondly, this paper analyzes the status of the interest rates marketization and the profit models of banks in our country. We can find that although China has not fully realized the interest rates marketization, it has reached a higher level than before and the profit models of commercial banks in our country are still traditional interest income oriented. Thirdly, this paper analyses the impact of interest rates marketization on the profit models of commercial banks from two angles ——international experience and case. From the international experience angle, we find that the income structure of American banking gradually relied on non-interest income more heavily and the business structure of it gradually developed to be diversiform during the interest rates marketization and then the profit model of American banking changed from the interest income oriented to the interest income and non-interest income equal. From the case angle, we find that although the profit model of Bank of Communications is still traditional interest income oriented, it has started gradually to change its income structure and business structure in the process of our country's interest rates marketization. From point to surface, this paper argues that the interest rate marketization will promote the profit models of China's banks gradually changing to the interest income and non-interest income equal or the non-interest income oriented.Combined with the analysis above, this paper finally puts forward suggestions on the transformation of China's commercial banks'profit model. Firstly, banks should establish strategic planning of profit model to determine the direction of the transformation and make gradual transition scheme. Then banks should improve their income structure and business structure considering their own situation, continue optimizing the interest business, and pay attention to the intermediate business. Meanwhile banks should optimize marketing strategy, just as adhering to the marketing concept of customer centered and integrating emerging technologies into marketing methods.