Research On The Transformation Of The Profit Model Of China's Commercial Banks Under The Background Of Interest Rate Liberalization

Market-oriented interest rate reform has been basically completed.And it canceled the floor of loan interest rate and deposit interest rate cap respectively in July 2013 and October 2015.From then,commercial banks have the right of interest rate pricing independently.However,with the narrowing of interest rate differentials,the increasing demand of the public,technical disintermediation and the development of capital market,commercial banks need to change their profit models and expand their business scope to promote profitable growth.This paper analyzes the related theories that domestic and foreign scholars proposed about the interest rate marketization and the commercial bank profit model.At the same time,the present situation of commercial bank profit model and its influence factors are analyzed from the statistical description and empirical analysis respectively based on the financial data of commercial banks from 2006 to 2016.Specifically,the statistical analysis part focuses on the transformation of the commercial banks profit model in the past 2015-2016 years.In the empirical analysis part,the selecting factors are the degree of marketization of interest rate,bank credit,assets and market concentration which are made the panel data regression with the profit structure indicators by using entity fixed effect model.And the influence of interest rate liberalization factor and other factors on the profit model of commercial banks is obtained from that.It showes that degree of marketization of interest rate,bank assets and bank credit have a clear positive effect on the profit model of commercial banks and the market concentration have some negative effect on the commercial banks profit model on shift.Finally,through the induction and reference of the interest rate marketization reform of Hongkong and South Korea and their transformation experience of commercial bank profit model,combined with the statistical description and the empirical analysis about commercial banks profit model in China,the sugesstions are put forward on commercial bank profit model transformation from two aspects :basic activities and support activities.