Research On The Impact Of Interest Rate Marketization And Intermediary Business Income On Commercial Bank Performance

With the continuous advancement of interest rate liberalization,the traditional business model based on interest rate spreads of commercial banks has been affected,and the spread income of commercial banks in China will gradually decline.The center of banking business will gradually shift to the intermediary business,and the transformation and upgrading of China's commercial banks will be achieved through the development of intermediary businesses.After China implemented the reform of interest rate liberalization,the bank's intermediary business has developed rapidly,and its proportion in operating income has gradually increased.The role of intermediate businesses in increasing operating income,stabilizing profits,and managing and controlling risks has become increasingly apparent.Exploring the development of intermediary business under the current financial environment is of great significance to the performance of commercial banks.It not only helps commercial banks increase their ability to respond to market changes,but also enhances the stability of bank development,and can effectively improve the efficiency of bank operations.Reduce the mismatch of market resourcesThis study uses the panel data of 16 A-share listed commercial banks in China for 2008-2016 as a sample.According to the three operating principle of commercial banks,a comprehensive index that can represent the comprehensive performance of listed commercial banks in China is extracted from the indicators that measure the performance of commercial banks through principal component analysis.At the same time,using the method of valuation to construct an interest rate market index that measures the progress of interest rate marketization reforms Firstly,we study the impact of interest rate liberalization and intermediary business income on the performance of sample banks,and then on this basis,we further demonstrate the effect of intermediary business income on the relationship between interest rate liberalization and bank performance.The data of listed commercial banks are divided into three types: four major state-owned banks,national joint-stock banks,and city commercial banks,and they are compared and analyzed.Finally,according to the relevant results of empirical analysis,this paper puts forward the policy recommendations for improving the business performance of different types of commercial banks under the interest rate marketization.The results show that in the course of marketization of interest rates,the marketization of interest rates has some negative impact on China's commercial banks.This negative impact is particularly significant for joint-stock commercial banks,while for the state-owned banks and city commercial banks,this negative impact is not significant,mainly due to the relatively strong pricing power of state-owned banks and the more flexible business model of city commercial banks.The development of the intermediary business can effectively alleviate the impact of the marketization of interest rates on the performance of commercial banks while improving the bank's performance.Compared with state-owned banks,the development of intermediary business is more significant for joint-stock banks and city commercial banks.This is mainly due to the weak competitive advantage of joint-stock banks and city commercial banks in deposit and loan business,and more emphasis on the development of intermediary businesses.