Research On The Impact Of Interest Rate Liberalization To Medium And Small Commercial Bank In China

The maturity of a national financial market can often be measured according to the degree of interest rate marketization.China's reform of the financial system is the ultimate goal of the capital market to determine the relationship between supply and demand.Currently,in order to achieve the interest rate with the financial market supply and demand fluctuations,China's financial institutions have gradually begun to carry out interest rate pricing.Into the interest rate market pricing era is just around the corner.However,in the economic development and the progress of China's commercial banks to provide assistance at the same time.Interest rate marketization also has an obvious impact on the profitability of China's commercial banks.The profitability of commercial banks will also face unprecedented challenges.The competition between the various financial institutions will be more obvious.The level of profitability can help commercial banks to improve operating profit,attract more high-quality customers,expand the scale of capital.In order to achieve sustainable management and ultimately improve the overall competitive strength for the entire financial market,China's small and medium-sized commercial banks is an important part of China's financial market.Based on the financial market for a long time,it is necessary to maintain the level of profitability after the interest rate market.It is very important to study the impact of interest rate marketization on the profitability of small and medium-sized commercial banks in China.This paper is based on the theory of interest rate marketization,the profitability of commercial banks,depth analysis of the interest rate transmission mechanism and the profitability of small and medium-sized commercial banks in China to measure.Five indicators of representative comprehensive profitability: net interest margin,return on assets,return on equity,cost-to-income ratio and non-interest income ratio.Simultaneously.This paper summarizes the current situation of China 's interest rate marketization and the profitability of small and medium-sized commercial banks in China.Taking China 's Small and Medium-sized Commercial Banks as an Example.Selected samples for the Chinese nationwide eight small and medium-sized commercial banks.The sample banks are selected from the wind database in 2006-2015 financial indicators.The interbank interest rate and the benchmark spread of the one-year variety are the explanatory variables.To the macro and industry level as a controlling factor.An empirical study was carried out using panel data regression analysis.The impact of one-year varieties of interbank interest rates and benchmark spreads on the profitabilityof small and medium-sized commercial banks in China.Finally,it is concluded that the positive or negative impact of interest rate marketization on the profitability of China's small and medium-sized commercial banks.The results show that the interbank interest rate has a greater impact on the profitability of China's commercial banks than the one-year interbank interest rate.The changes in the interbank interest rate and benchmark spreads of the one-year varieties have an impact on the profitability of small and medium-sized commercial banks in China and have a time lag.At the same time,control variables also have a significant impact on the profitability of small and medium-sized banks in China.Combined with China's current economic system.Meanwhile,find out the causes and key points that lead to this conclusion,discusses the strategies of small and medium-sized commercial banks in China to deal with the marketization of interest rate,put forward the countermeasures and suggestions to improve the bank's profitability.Thereby,in order to ensure the steady development of China's small and medium-sized commercial banks,it is necessary to enhance the profitability of small and medium-sized commercial banks in China.