Research On The Influence Of Interest Rate Marketization On The Profit Model Of China's Listed Commercial Banks

Interest rate is an important indicator of China's financial market.The market-oriented reform of interest rates in China began in 1996 and is still undergoing gradual reforms.With the continuous advancement of the process of marketization of interest rates in China,the People's Bank of China has gradually eliminated the control over deposit and lending rates,and the formation mechanism of interest rate liberalization is also constantly improving.Against this background,the spread of deposits and loans in China's financial market has continued to narrow.The long-term dependence of net interest income on interest rates on deposits and loans has led to a certain impact on commercial banks.Therefore,under the background of interest rate marketization,it is very important for commercial banks to change the profit model to stabilize the stability of their operations.Therefore,this paper mainly studies the impact of interest rate marketization on the profitability model of China's commercial banks,and it has important practical significance for commercial banks to adapt to the marketization of interest rates and transform their profit models in the future.Based on the background of China's interest rate marketization reform,this paper studies the impact of interest rate marketization on the profitability model of China's commercial banks.In the theoretical analysis part,it is generally believed that the interest rate liberalization will further narrow the deposit-loan gap and accelerate the market-based interest rate pricing mechanism.As a result,the competition between commercial banks will intensify,and it will also produce a profit model for commercial banks.A certain degree of influence.Although in the short term,China's commercial banks still dominate the model based on net interest income,but from the perspective of long-term development,this traditional profit model will be greatly affected.At the same time,the profit model of non-interest income of commercial banks is gradually developing.This is also a major opportunity for commercial banks to realize profitability transformation under the interest rate liberalization.In terms of international experience,this paper analyzes the United States and Japan.First,it summarizes the market-based interest rate reforms in the United States and Japan,and on this basis,analyzes the impact of interest rate liberalization reforms on the profitability model of commercial banks in the United States and Japan.Its main impact is as follows:narrowing spreads can change the profitability model of commercial banks,that is,from the dominant profit model of interest income to the dominant profit model of non-interest income.With the advancement of interest rate marketization reforms,this transition will continue to develop,and commercial banks from the United States and Japan can also see this change.In the article's analysis of the status quo in China,the paper summarizes the process of market-based interest rate reform in China,and analyzes the current status of China's commercial banks' profit model under interest rate liberalization.From the analysis,it is found that in the current profit model of China's commercial banks,the source of traditional business revenue is impacted,and the proportion of net interest income has declined,but it still dominates operating income,while at the same time the proportion of non-interest income is increasing.rise.In addition,there are also certain differences between state-owned commercial banks and joint-stock banks.At the same time,under interest rate liberalization,commercial banks'net interest margins are continuously shrinking,so commercial banks will create credit risks in order to maintain the stability of their profitability,resulting in an increase in their non-performing loan ratios.This is also to promote commercial banks,transformation under interest rate liberalization.The reason for its profit model.In the empirical analysis part,this paper selects relevant data from 13 commercial banks in China,and analyzes the impact of interest rate liberalization on the profitability model of commercial banks.At the same time,we classify the sample data and empirically study the extent to which the profit models of the five state-owned commercial banks and joint-stock commercial banks are affected by interest rate liberalization.The empirical results show that the marketization of interest rates will have a certain proportion of impact on the selection of profit models by Chinese commercial banks.The specific performance is that with the development of interest rate liberalization,the interest rate spread in the financial market will continue to narrow,and the proportion of profit models that commercial banks choose to rely mainly on net interest income will be reduced,and the proportion of non-interest income-based profit models will be reduced.It will rise.In order to-introduce commercial banks with the deepening of the interest rate marketization reform,they will choose a non-interest income-based profit model to a greater extent,and commercial banks will develop non-interest income business in order to reduce their credit risk.Second,we classify different commercial banks and do regression analysis separately.Through empirical results,it is proved that the degree of interest rate marketization affects the profitability model of joint-stock commercial banks more than that of the five major state-owned commercial banks.This also verifies that the degree of influence of the interest rate marketization of the previous article analysis on the profit models of different types of commercial banks is different.In the end,the paper summarizes the above analysis and combines with China's national conditions,and proposes targeted policy suggestions on how to transform the profit model of China's commercial banks under interest rate liberalization.