Research On The Profit Model Transformation Of Chinese Commercial Bank Under The Background Of The Interest Rate Liberalization

In October 2015, with the cancellation of deposit and loan rate limits of the commercial bank,20 years' interest rate liberalization of China was completed. Under the background of interest rate liberalization, it is increasingly important for commercial banks to break traditional profit model to overcome the narrowing margins on net profit. In recent years, economic globalization, the deepening of Internet finance and the highlight of financial disintermediation have great impacts on China's immature market of interest rates. How central bank strengthens the guidance on interest rate transmission mechanism and how the banking sector strengthens the management of interest rate risk are important tasks in this era.This thesis focuses on interest rate liberalization, emphasizing how the commercial banks adjust income structure, product innovation system and change the profit model, in the context of minimizing the impact of interest rate market-oriented pricing on commercial banks profitability.This thesis analyzes the impact of interest rate liberalization on commercial banks profit by the methods of theoretical and empirical analysis. First it indicates the interest rate liberalization and rate-related theories. Then it investigates the successful experience of the transformation process of the United States and Japan, as well as the failure of the Chilean interest rate reform, to point out that the road to learn after China's interest rate liberalization. The empirical analysis examines the structure of China's commercial banks profit model by using 16 listed commercial banks' profitability indicators and intermediate business income data. The results show that the proportion of intermediate business income in operating income is on the rise, but the current net interest margin income is still the main source of revenue in recent years. Finally, this thesis selects 16 commercial banks' data and establishes a regression model to regress the relevant explanatory variables, getting the relationship between the variables and the profitability model of banks.Based on the results of theoretical and empirical analysis, this thesis gets the conclusion that the traditional spread income of commercial banks is still the main source of income. Referring to the success and failures of foreign commercial banks during the interest rate liberalization, based on the development of traditional interest income, China's commercial banks should update and optimize the business structure, promote the economic transition and make retail business bigger and stronger in order to ensure the continued growth of bank revenue,...