A Study On The Impact Of Interest Rate Marketization On The Profitability Of China' Heterogenous Commercial Banks

With the release of the floating rate ceiling of the deposit interest rate in October 2015,the interest rate market reform in China has been basically completed in the past 20 years,and the interest rate has become more and more prominent as the price of capital in the market resource allocation.As a major participant in the reform of interest rate marketization in China,commercial banks have suffered the great impact of reform.Due to the long marketization of interest rate in China and the different characteristics of interest rate control policy at different interest rate marketization stages,the external profit environment faced by commercial banks also changes greatly.Therefore,we take the interest rate market as the background,according to the interest rate marketization reform process,the impact of phased research on the profitability of different commercial banks,and further analysis of the factors that affect the profitability of commercial banks due to commercial banks heterogeneity and the degree of marketization whether there are significant differences.On this basis,we provide specific recommendations for different types of commercial banks to optimize their profitability by improving their profitability.Our research is mainly carried out from the following aspects:(1)The process of interest rate marketization is divided into preparatory stage,transition stage and deeping stage.Focus on the intermediate business,asset quality,asset size and business efficiency how to influence the profitability of banks in the transition stage and deeping stage.(2)Using the principal component analysis method to measure the profitability of commercial banks,the profitability of commercial banks in China is evaluated and ranked synthetically,and to research the profit factor how to influence the profitability of banks in different stage.(3)In the quantitative analysis,we use the annual data of China's listed banks at the end of 2004 to the end of 2015 and the annual GDP growth rate to establish the panel data model.Through empirical analysis,we examine the microeconomic factors in different types of banks how to influence the profitability of commercial banks,and whether there is a difference in its significance.Through the qualitative analysis of the impact on the profitability of the bank in the process of interest rate marketization and the quantitative analysis of the factorsinfluencing the profitability of banks in different interest rate marketization stages,we find that:(1)the profitability of commercial banks is stable and to enhance in the transition stage and to decline in the deepening stage.(2)In different stages of marketization of interest rates,the external and inside factors have different effects on the profitability of different types of commercial banks,and the significant also changed.In the interest rate marketization transition stage,intermediate business are more significant to the profitability of state-controlled banks,and the net interest margin has a more significant impact on the profitability of joint-stock banks.In deeping stage,the significant effects of the non-performing loan and GDP in the joint-stock bank and city bank are obviously improved,and the empirical results show that there are big problems about the adjustment of the business structure in city banks.Finally,according to the research conclusion,we offer recommendation to state-controlled banks,joint-stock banks and city banks,hope heterogenous commercial banks under the background of interest rate marketization could combine their own characteristics to further optimize the operation and management,improve profitability.