Impact Study Between Interest Rate Marketization And Performance Of Listed Commercial Banks In China

In the 1990 s,China put forward the interest rate marketization reform,through nearly 20 years endeavor,we had got some progress,and our central bank had announced rises in both interest rates and bank reserve requirements in October of 2015,which marked the end of the process of interest rate marketization.In the course of interest rate marketization,with volatility amplitude and frequency of interest rate gradually increased,variety of risks,such as interest rate risk and credit risk,will become the important market risks for commercial banks in our conuntry.Meanwhile,the marketization of interest rate may narrow deposit-to-loan spreads,which can promot the adjustment of business structure and business strategy of commercial banks in turn,urge them to open up new channels for the use of funds,discover new profit points,thus promote the development of the entire financial industry to a more healthy direction.This article mainly adopts normative research and empirical research with the combination of research methods.In normative research,the article con cludes the financial repression theroy and financial liberalization theroy,and combs the related literature at dommestic and abroad,and also puts forward the assumptions;In empirical research,the paper based on the panel data of 16 listed banks fom 2006 to 2015,from the perspective of three principles of the commercial banks,and extracted a comprehensive index to represent the comprehensive performance of commercial banks by principal Component Analysis method,to dicusse the relationship between the interest rate marketization reform and commercial banks' comprehensive performance.The results says that there is unsignificant negative correlation between interest rate marketization process and bank security,but significant positive correlation between interest rate marketization process and liquidity as well as profitability.In addition,the interest rate liberalization has a significant effect on the comprehensive performance of commercial banks.At the same time,non-interest income ratio has a significant moderating effect at the same direction between the interest rate marketization and the performance of commercial banks.Based on the reaserch introduced above,This thesis puts three policy recommendations for the Chinese commercial banks: Firstly,adhere to the three principle of bank management,Earn a profit in the range of risk and capital,always stick to the bottom line of compliancemanagement.Secondly,Improve their own risk management and control capabilities,update their knowledge timely,make a good preparation and enhance the ability of management skill and practical operation.Finally,promote innovation orderly within their own risk management capabilities and risks.