Research On The Interest Margin Management Of China's Commercial Banks Against The Background Of Interest Rate Liberalization

Since the Third Plenary Session of the 14 th CPC Central Committee in 1993 put forward the basic idea of interest rate liberalization,China's interest rate liberalization reform has been continuously promoted,especially since the party's 18 th National Congress,gradually liberalizing the deposit and loan interest rate control of commercial banks,and in 2018 In May of the same year,the “13th Five-Year Plan for Modern Financial System” was issued,which required the cultivation of the market benchmark interest rate system and played its decisive role in resource allocation.On April 11,2018,the director of the People's Bank of China,Yi Gang said,at the Boao Forum,that China's interest rate system "dual-track" interest rate system will enter a new stage of integration reform,and the reform will promote the gradual unification of the central bank deposit and loan benchmark interest rate and money market interest rates.With the accelerating process of interest rate liberalization,the level of interest margin in China's banking has been narrowing,which makes commercial banks face new challenges.Therefore,it is necessary to explore the commercial bank interest margin management model against the background of interest rate liberalization reform and propose improvements.This paper reviews the relevant literature on interest rate liberalization and margin management,and has a deep understanding of the theoretical basis and model setting proposed by domestic and foreign research scholars.Starting from the international experience of interest rate liberalization,this paper uses the financial deepening theory to compare and analyze the national cases of "gradual" and "radical" two different reform methods,and then draws the characteristics of China's reform,and analyzes the impact of reform on commercial banks.Then it discusses the related concepts and connotations of interest margin management,and clarifies that interest rate management mainly adjusts from the two aspects of asset and liability management and operation management to maintain the level of interest margin of commercial banks,guarantee profitability and smooth operation.The study found that China's commercial banks have a concentrated asset-liability structure,and their management methods are single and inefficient.In the second chapter,the data released by the People's Bank of China and China Banking and Insurance Regulatory Commission revealed that the benchmark interest margin of China's deposits and loans showed a downward trend.The Shanghai Interbank Offered Rate(SHIBOR)has fluctuated sharply since its launch,and the net interest margin has also declined.The income structure of commercial banks is also changing.Therefore,the third chapter,against the changing background mentioned in the second chapter,makes an analysis of the interest margin management of China's commercial Banks,and explores the changes of China's commercial banks' interest margin management in the interest liberalization process.The fourth chapter analyzes the influence of interest liberalization on the interest margin management of China's commercial banks,and the empirical results show that interest rate liberalization has a significant impact on the interest margin management of Chinese banks.According to the connotation of interest rate management,the relevant indicators of interest rate liberalization and interest rate management are selected to sort out the relevant data of A-share listed commercial banks,and empirical analysis will be done.The empirical results show that interest rate liberalization continues to advance,and the relevant indicators of China's commercial banks' asset-liability structure have been adjusted.The management efficiency indicators in business management have shown a growth trend with the deepening of interest rate liberalization reform,reflecting the commercial bank's interest rate management,to a certain extent,has not improved in the reform process.At the end of the chapter,the empirical analysis shows that the interest rate liberalization has significant impact on the interest rate management process indicators.The interest rate liberalization has not promoted the management efficiency of commercial banks.The margin management has extensive scale growth characteristics.The interest rate management process indicators have a significant impact on the evaluation indicators,especially the credit risk and interest rate differentials are negatively correlated.There are certain problems in the pricing of commercial banks in China,because the credit risk does not earn a corresponding risk premium.Through theoretical and empirical analysis,the article discusses the problem of interest rate management of commercial banks in China,and studies the influence of different management methods on the level of commercial bank's margin.Finally,it puts forward suggestions for improvement: China's commercial banks should rationally treat margins and clarify the core of commercial banking business and function,carry out refined margin management,improve its own pricing system and appropriately expand the scale of loans,strengthen risk supervision and continuously promote financial innovation,and achieve diversified development.