The Study On The Influential Factors Of Our Country City Commercial Bank's Net Interest Margin

Net interest margin is a key indicator of the operational efficiency and pricing power of commercial banks,as well as an important factor affecting the spreads and operating income of banks.China's interest rate marketization makes the commercial banks have a greater pricing power.At present,the limit on deposit and lending rates have been released,then commercial banks can make independent pricing in accordance with its own assets and customer credit conditions,and formulate appropriate interest margin to increase profits.At present,the city commercial banks have become an important part of China's banking system.The city commercial bank has become an important component of the banking system in our country.Along with our country to speed up financial reform and opening up process,various policy measures gradually to the ground,especially the formal implementation of deposit insurance system,interest rate liberalization reform was basically completed,and interest margin narrowed further.Rapid development of Internet financial direct impact on the banking industry profit model.Traditional domestic banking industry is facing severe challenges.Compared with large commercial banks and joint-stock commercial banks,city commercial bank is facing unprecedented existential test which asset size is smaller and set up time is later.Therefore,the study of the influence factors of our country city commercial bank net interest margin,in order to,provide reference for city commercial Banks to raise competitiveness,that has important realistic significance.Based on this,the dissertation embarks from the trader model.Net interest margin influencing factors is derived through the introduction of the net interest margin model theory and combining the important influence factors referred in the domestic and foreign research and another influencing factors by analyzing our country city commercial bank development characteristics.The study selected 11 indexes.On the basis of qualitative analysis,adopt the nearly six years of 27 city commercial bank data,the panel data model is set up.Based on the result of the constructed regression model,analyze the influencing factors of our country city commercial bank net interest margin.The empirical results show that the explanatory variables influence to our country city commercial bank net interest margin is broadly in line with theoretical hypothesis.Among them,market concentration,the average operating costs,interest rate risk,the regional economic development level,risk aversion and opportunity cost of reserve has significant positive correlation for our country city commercial bank's net interest margin;Intermediate business income,bank transaction size and cross-regional development has significant negative correlation relationship to our country city commercial bank's net interest margin;And credit risk,management quality has failed to pass the test of significance.Through theoretical and empirical analysis,we draw certain enlightenment for the direction of the operation and management of our city commercial banks.City commercial banks in China should maintain stable level of net interest margin,and develop intermediary business,and stick to their own development,and speed up technological financial development.