Research On The Profit Model Of China Merchants Bank Under The Background Of The Interest Rate Liberalization

Interest rate plays a crucial role in the financial market.As the price of funds,it guides the flow of market funds and plays an important role in allocating resources.China has achieved major successes in the marketization of loan interest rates and deposit interest rates.In the interest rate marketization of commercial banks,the challenge is that narrowing interest margins will have a greater impact on interest income.The opportunity lies in being able to force commercial banks to innovate,constantly improve and perfect business models,and increase their pricing power,thus realizing our country the great development and great prosperity of the commercial banking system.The long-term interest rate spread of China's commercial banks is the development support.Interest income accounts for a long-term dominant position.The marketization of interest rates has not yet been completely completed.This kind of profit model may have a chance,but with the interest rate market reform Completion,as well as the current economic situation and other aspects of superposition,the original single profit model of commercial banks had to change.However,the once-in-one transformation is unrealistic,and most of the commercial banks in China are in a period of excessive balance between interest spreads and non-interest spreads.Therefore,this paper focuses on the interest rate marketization and analyzes the profitability model of commercial banks.This paper chooses China Merchants Bank because it has achieved remarkable results in its transformational road,and its profit model is also different from other commercial banks.The commonality is that interest income all occupies a large proportion.The difference lies in the reform and innovation of China Merchants Bank.The rapid rise of retail business,the development of effective middle business,and a lot of bright spots are worthy of in-depth research.Therefore,through case analysis,this paper selects a representative representative of China Merchants Bank for joint-stock commercial banks to conduct research and analyze the impact of interest rate liberalization on its profit model,such as China Merchants Bank's autonomous pricing capability,business income level,and deposit and loan business,risk,etc,as well as the analysis of China Merchants Bank's profit modeltransformation from the perspective of China Merchants Bank's assets,liabilities,and revenue,and finally,put forward countermeasures to promote the transformation of China Merchants Bank's profit model,that is,to optimize traditional intermediate business while continuously innovating high-Value-based intermediary business;continuously strengthen retail business to form distinctive competitive advantage;differentiate pricing based on different needs of customers and markets;and use asset and liability optimization to prevent interest rate risk.