Research On The Profit Model Of City Commercial Banks In China Under The Background Of Interest Rate Liberalization

The interest rate market has recently become a hot topic,but the interest rate liberalization in early 1970s was put forward,then the rapidly development of high inflation and financial market appeared in developed economy,interest rate control problems have become increasingly prominent,the new interest rate mechanism imminent,the developed countries in Europe and America in 1980s has completed the marketization of interest rate reform.Interest rate is the price of the market,which can effectively guide the flow of market funds,rational allocation of market resources.When interest rates are regulated,they can cause serious financial distortions and financial repression.So the reform of interest rate market is the most important of the economic policy for each country and the economy.China's socialist market economic system,the interest rate market reform than the developed countries,but also has its special characteristics.Since the reform and opening up,China has gradually deregulated market,especially after 2012 entered the accelerated phase,and in 2014 and 2015 fully liberalized lending rates lower and upper limit of deposit interest rate,thus the interest rate marketization reform in China has been basieally completed.The interest rate market to the entire financial industry have a profound impact,China's commercial banks have been as the main supply of social financing channel,rely on national policy and banking regulatory policy support,enjoy the fixed rate of dividend policy,monopoly.Profit of commercial banks has long been heavily dependent on the scale of assets especially credit assets size expansion.After the interest rate market,commercial banks will have an independent pricing.For large state-owned commercial banks and large and medium-sized joint-stock banks,asset size,perfect management system,strong ability to resist risks,in the interest rate market reform,there is a certain ability to resist.As for China's city commercial banks,and the scale of assets due to geographical restrictions,and late start,low starting point,so in the process of market-oriented interest rate reform in great impact on profit pattern of spread income as the dominant tradition is seriously challenged,business transformation is imminent.2007 is the first milestone in the development of the city firm,the three city firm listed for the city firm's development has brought hope.However,since 2007 Nanjing bank,Bank of Ningbo,Bank of Beijing have been listed for a long time,the city firm listed are subject to a lot of obstacles.Not listed plus geographical restrictions,many city commercial rights offerings to assets limited.For landing A shares has been elusive,Chongqing bank,merchants bank,Harbin bank listed in Hong kong.At the same time,the interest rate marketization reform of our country is like a raging fire,city commercial banks have to hurry.Due to the excessive reliance on the traditional spread of the dominant model,the interest rate market has led to a sharp narrowing of the spread,so the city firm's profitability has declined rapidly.In recent years,the Commission will suddenly open the door to the city firm IPO,have announced the listing audit program schedule of several city firms,so the Bank of Jiangsu on 2016 at the Shanghai Stock Exchange listed on the main board,a 07 year after the first listing of the city firm,which marks the ice city commercial development,recently there are dozens of city commercial banks is waiting in the market,the development of city commercial banks ushered in a wave of climax.The impact of interest rates on commercial banks is mainly dependent on the interest rate spread path,the liberalization of interest rates directly led to the decline in loan interest rates,deposit interest rates rise,spreads income reduction.Many banks began to vigorously develop the intermediate business,trying to get rid of the spread of the dominant business model,raising the proportion of non-interest income,and the city firm in this regard does not seem to be good.This article attempts from the marketization of interest rate on bank profitability in terms of the influence,based on the basic theory of interpretation inference method,combination of qualitative and quantitative empirical data on reality analysis and verification,an objective evaluation of the interest rate market specific effects of bank profitability and revealed to make policy recommendations to deal with the interest rate of commercial banks the market impact on the profitability of the.This paper selects the city commercial development of the first ice breaking period-2007 to 2015 as the starting point of time,to the end,combined with the specific process of interest rate liberalization in China,the asset size of the top five Bank of Beijing,Bank of Nanjing,Bank of Ningbo,Bank of Shanghai,bank of Jiangsu as an example,respectively analyzed the profitability indicators,observe the changes in net interest margin,intermediate business income,total revenue in the interest rate reform process,and then analyzed the existing problems of profit model.Then quantitative analysis,the same is used in 2007-2015 years,Beijing bank,Bank of Nanjing,Bank of Ningbo,Shanghai bank,Bank of Jiangsu panel data.According to Huang Shan(2015)of the research results,to calculate the interest rate marketization index,the explanatory variables as explanatory variables and income difference,the proportion of non-interest income,and the selected measure of bank internal control ability of the non-performing loan ratio and loan deposit ratio,the cost income ratio as control variables,explanatory variables as the rate of return on total assets,can be integrated to measure the overall profitability of banks.Using Eviews7.0 to carry on the data to carry on the smooth test,the cointegration test,the fitting regression analysis,and draws the conclusion,proposes the corresponding suggestion.