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

stead,financial institutions determine interest rate levels based on the market's investment and financing supply and demand.The level of interest rates also reflects the state of financial markets.In order to promote the development of its own business,financial institutions have effectively adjusted the interest rate level by grasping the supply situation of the financial market and the status of their own funds.The continuous advancement of China's interest rate marketization reform has seriously affected the profit model of commercial banks.The traditional profit-based profit model dominated by commercial banks will be difficult to sustain,and commercial banks must transform their profit models to enhance their competitiveness.Commercial banks should formulate new strategic objectives,change the direction of development,change the profit model,control operating costs,actively expand non-interest income business,keep the spread level within a reasonable range,and gradually make the profit model dominated by simple spread income.Change the profit model of balanced development of spread income and non-spread income to adapt to the impact of interest rate liberalization on China's banking industry.This paper uses the combination of theory and case to analyze the impact of the interest rate marketization environment on the profit model of Bank of China B Branch,and the profit model and transformation strategy of Bank of China B Branch in the context of interest rate marketization reform.First of all,in the theoretical research part,this paper introduces the relevant background,significance and ideas of the research,reviews the domestic and foreign scholars' research on the profit model of commercial banks under the interest rate marketization,and then the concept of interest rate marketization and the concept of commercial bank profit model.And the main types are explained in detail.Secondly,in the field of case studies,this paper selects the Bank of China B branch,introduces the basic situation of the Bank of China B branch,analyzes the status quo of its profit model,and finds that Bank of China B Branch is at the interest rate marketization.Under the background,there are insufficient differential interest rate pricing ability,the loan-to-loan spread narrows;the non-interest income growth point is single;the deposit structure is unreasonable,and the high-cost deposit ratio is significant.There is an in-depth analysis of the reasons for the existence of these problems in Bank of China B Branch.Finally,based on the existing problems,the rationalization proposal for transforming the profit model is proposed.Specifically,there are several aspects:(1)continue to develop intermediary business and expand profit channels;(2)optimize traditional deposit and loan business and improve business structure balance;(3)strengthen professional talent training and improve endogenous power;(4)Combine Internet finance business to promote product innovation.I hope that the above countermeasures can provide new ideas for Bank of China B Branch and other local banking business development,and effectively promote the transformation of profit model under the new situation.