Research On The Transformation Of JS Bank's Profit Model Under The Interest Rate Marketization

The cancellation of the floating limit on deposit rate marks the basic completion of interest rate liberalization in China.It has entered a new threshold since then.China has been implementing strict interest rate control policy for a long time.Because of the "protection policy" for the spread of high deposit and loan interests,the Commercial Banks in China has long been relying on traditional capital loan business and margin interest is the major source of profit.However,after interest rate liberalization,Banks' interest spreads of deposit and loan are squeezed.At the same time,the traditional profit model will be shocked.It has certain theoretical significance and practical significance to research the transformation of Commercial Banks' profit model under the background of interest rate liberalization.In the process of interest rate liberalization,JS Bank needs to make positive adjustments and take corresponding countermeasures to realize the strategic transformation of profit model.The interest rate liberalization is taken as a background and JS Bank is selected as an analysis object in the paper.Through the vertical analysis of the variation tendency involved assets and liabilities,intermediate business,income structure and assets profitability of JS Bank in recent years,combined the horizontal comparison with the same industry in these aspects,the existing problems in the profit model of JS Bank are summarized as follows:excessive reliance on interest margin,the traditional businesses is not sustainable in interest rate liberalization;the development level of intermediate business is low,the business types are unbalanced;the unbalance of loan structure leads to a non-performing loan ratio at an all-time high;blindly focus on the expansion of scale,neglect the benefit;self-positioning is inaccurate,the own advantages are not be exploited effectively.The problems existing in the profit model of JS Bank are mainly due to the simple income structure,weak innovation ability,imperfect risk control mechanism,disinter mediation and so on.After the analysis of the existing problems in the profit model of JS Bank and their existence reasons,the concrete countermeasures of the profit model transformation of JS Bank under interest rate liberalization are put forward,including adjust income structure,constantly develop retail business,investment bank business,small and micro business and innovation business,constantly improve the revenue share of intermediate business to make the structure of assets and liabilities more and more reasonable;carry out differentiated development strategies and have an accurate positioning in market,products,services and product pricing to find a more suitable model for its own development;effectively use Internet technology,weaken the Internet financial impact on its financial intermediary status,continuously improve the experience of various marketing channels,gradually lay out the construction of e-commerce platform and use Internet technology to help its own transformation;improve risk control system,strengthen the construction of professional team and control non-performing loan ratio;constantly enhance innovation ability.