The Impact Of Interest Rate Marketization On Commercial Bank Profitability And Countermeasure Analysis

Interest rate is the price of capital.lt is the price that borrowers pay for the money that they borrowed and is also the reward of the lenders for delaying consumption.Interest rate is an important tool to adjust the monetary policy which has a great impact on the national economic system.Our country has deregulated the interbank offered rate in 1996,which is the starting point of our interest rate liberalization.Banking develops in pace with the development of economy,its leverage effect is the biggest driving force of economic development,which plays a role in funds raising and distributing,optimizing the allocation of resources.As an important part of the economic lifeline,Barking industry is bound to be affected by the impact of interest rate liberalization.The year from 2003-2013 is known as the ten year of lying to make money,is the gold ten years that offer commercial banks a chance to make enormous profit.With the accelerating process of the interest rate liberalization,the operation of commercial banks has been difficult,and the phenomenon of "shortage of money" and the rising of non-performing loan ratio have emerged.In this paper,I have selected 17 banks as the research object,which includes the large commercial banks,joint-stock commercial banks and local commercial banks.According to the China Banking Regulatory Commission's statistics for 2014,the total assets of the 17 commercial banks accounted for nearly 70%of the banking financial institutions,thus selecting the 17 banks have certain powers of persuasion.In this paper,I selected ROAA as a measure of bank profitability in the panel data of commercial Banks to establish multiple linear regression model for empirical analysis.Finally,according to the results of the empirical analysis,I provide relevant policy recommendations,in order to help bank have a good transition under the background of interest rate marketization.