Effect Of Intermediate Business On Commercial Bank Profitability Under The Interest Rate Liberalization

Financial market is the core of the capital factor optimization configuration,require carrier market macroeconomic background.At the same time the main body of China's financial markets,commercial bank of China,its allocation efficiency of capital resources decide the development direction of financial markets and advanced level,and the liberalization of interest rates is in line with international standards,into the international financial market,service the real economy in China,and the only way to improve profitability.Need to stress is that limited by the current situation of the development of economy and industry,China's commercial Banks profit model with more interest income,only less intermediate business income supplement.In the process of liberalization of interest rate,under the competition between Banks,the difference between the deposit interest rate and loan interest rates is bound to be narrowed,within a certain range can impact spreads income of profit structure,reduce the commercial Banks to develop intermediary business,reversed transmission its profit model transformation.And interest rate liberalization can be divided into deposit and loan interest rate liberalization of interest rate liberalization concrete,to the development of the commercial bank profitability bring opportunities and challenges,and intermediary business through ascension the transmission mechanism of indirect effect on profitability.At the same time,the intermediary business whether effective help Banks to achieve transformation and improve profitability,still need to validate.Therefore,to explore the liberalization of interest rate under the background of development of intermediary business of commercial bank profitability effect has significant practical significance.This paper to study the interest rate liberalization,the intermediate business of commercial bank profitability related research literature,and then the theory of analysis of their respective research status and influence mechanism,after 16 listed Banks in 2007-2007 annual panel data,the comprehensive index evaluation system was used to measure the profitability of the level,on the basis of building includes interest rate liberalization(deposit),intermediary business,interest rate liberalization and the intermediary business cross terms,including the dynamic panel model,the empirical analysis in the effect.Results show that the development of intermediary business is beneficial to improve the commercial bank profitability,and effects of the impact of interest rate liberalization bank differences,help small and medium-sized Banks(small and medium-sized joint-stock Banks and city commercial bank),is not conducive to the development of the state-owned Banks.In addition,the intermediary business have a marginal effect to the promotion of market-oriented interest rate is positive,namely the development of intermediary business will weaken the liberalization of interest rate spread effect,and strengthen its positive effect.Finally,based on the above study and put forward policy Suggestions related to the following three aspects,for state-owned Banks should reform the enterprise management,reduce operating costs,increase the financial innovation;For small and medium-sized Banks should focus on improve intermediary business,improve the deposit insurance mechanism;In other ways,all commercial Banks should strengthen the risk prevention,to cultivate innovative talents,improve investors financial management consciousness.