The Impact Of Interest Rate Liberalization On The Performance Of Listed Banks In China

Since the opening of interbank lending in 1996 and the complete liberalization of deposit interest rate in 2015,China's interest rate marketization reform has basically been completed.And with the relaxation of market access in recent years,the continuous development of direct financial market,financial disintermediation and the continuous rise of Internet finance,the financial structure of China is constantly changing;the market environment and operating conditions of the banking industry are undergoing profound changes.The narrowing of the bank spreads caused by the marketization of interest rate inevitably waver the foundation of the profit of banking industry,aggravate the operation risk of the bank,and bring a severe challenge to the Chinese banking industry with the traditional interest income as the main source of profit.This paper mainly studies how the listed banks have been affected in the process of promoting interest rate market and how the listed banks should take effective measures to deal with the impact of interest rate marketization.The specific research ideas are as follows.On the basis of a simple review and combing of the process of interest rate marketization in China,through the selection of the comprehensive index system,the process of Chinese interest rate marketization from 1996 to 2016 is quantified and measured,which can better reflect the interest rate of China's interest rate marketization.Based on the generalization and summary of the general logic of the effect of interest rate marketization on the operating performance of listed banks,the paper selected 16 listed banks of Shanghai Stock A shares as samples and measured their profitability,safety and liquidity representative indexes for 2006-2016 years,and obtained each sample respectively.Return on Assets(ROA),loan to deposit ratio(LDR)and the value of bank bankruptcy Z(LNZROA)in each year are three representative financial indicators of the interest rate marketization index and the listed bank profitability,liquidity and safety,and two control variables in macro and micro aspects are selected.By building a panel data model and using Statal4.0 software to regress it,the impact of the interest rate market on the performance of the listed banks in China is tested.The results show that the interest rate marketization has indeed caused a certain impact on the performance of the listed banks in China,which reduces the level of the bank's profitability and liquidity and increases the level of the risk.In addition,the impact of interest rate marketization on different types of banks is different.In terms of profitability and liquidity,the impact of interest rate marketization on state-owned banks,joint-stock commercial banks and urban commercial banks is increasing in turn.In security,interest rate marketization has a significant impact on joint-stock commercial banks and urban commercial banks,and has greater impact on joint-stock banks,but to state-owned enterprises the security of the bank does not have a significant explanation.Finally,based on the above theoretical analysis and empirical results,from three angles of profitability,liquidity and security,the paper suggested that the listed bank should change profit growth model positively,optimize credit structure,improve the quality of assets,develop intermediate business,improve management level,increase product innovation and further improve risk prevention.