The Influence Of Marketization Of Interest Rate On The Profit Model Of China's Commercial Banks

With the liberalization of the deposit interest rate ceiling,the degree of interest rate liberalization in our country has reached a higher level.The establishment of the formation mechanism of interest rate liberalization also needs to be gradually intensified and gradually improved in the market.The continuous deepening of the marketization of interest rates will inevitably cause severe impact on financial markets.Commercial banks,which are an important part of the financial market,are also subject to great challenges in their traditional interest-based revenue model.Therefore,this paper focuses on the impact of interest rate liberalization on the profitability model of commercial banks,and puts forward suggestions for its future development.First of all,this article studies the related theories of interest rate liberalization and the profit model of commercial banks,and concludes that interest rate liberalization will narrow the interest income of commercial banks,affect their profitability,and affect its profit model by affecting its income structure and business structure.Secondly,through the study on the impact of interest rate liberalization on the profit models of the U.S.and Japanese commercial banks,it is concluded that they have not completely abandoned the traditional profit model,but actively carried out structural changes to their loan and loan business and stabilized their interest income.Third,through an analysis of the status of the profit model of commercial banks,we find that China's commercial banks are still profit-driven,but they are gradually undergoing transformation.On this basis,the indepth study of the composition of interest and non-interest income of commercial banks,interest income from most of the deposit and loan business,non-interest income mainly rely on traditional intermediary business,a low degree of diversification.Further,it continuously strengthens financial innovation,develops intermediate businesses,expands non-interest income and transforms its profit model according to its own situation.Then,in conjunction with the process of China's interest rate liberalization reform,we will focus on selecting China's five major state-owned banks and representative non-state-owned banks as samples to comprehensively analyze the profitability model of commercial banks,an important pillar of China's financial market.The empirical results show that the marketization of interest rates has a positive effect on the transformation of the overall banking industry's profit model,and state-owned banks are less affected than non-state-owned banks.Finally,according to the foregoing analysis,suggestions are made for the transformation of the profit model of commercial banks: maintaining a reasonable level of interest rates,optimizing the credit structure,and achieving a steady development;integrating existing business resources,vigorously developing intermediate businesses,and improving their own competition all commercial banks should differentiate and develop according to their own advantages.