An Analysis Of The Impact Of Interest Rate Marketization On The Income Structure Of Commercial Banks In China

The interest rate marketization reform not only promotes the sound development of China's financial industry,but also has a great impact on China's commercial banks in the short term,which makes it impossible for them to continue to implement the development concepts of "deposit bank" and "passive debt".In the past,China's commercial banks relied excessively on deposit-loan spreads to obtain excessive profits.However,the phenomenon of business homogenization and simplification is serious.Over-pursuing the growth of quantity while ignoring the extensive growth mode of stock structure has been unable to cope with the narrowing of deposit-loan spreads brought about by interest rate marketization,which leads to the continuous reduction of profit margins.This not only restricts the long-term development of commercial banks,but also has a negative impact on the overall competitiveness of our commercial banks.The income structure of commercial banks runs through the whole development process and it is the main content of managers' management activities.Under the background of interest rate marketization,market competition is becoming increasingly fierce.In order to ensure the sustainable development of commercial banks' profit margins at a high level,they must adjust their income structure through business transformation,establish diversified income structure on the basis of risk control,and gradually adapt to the requirements of interest rate marketization.Previous scholars in the study of income,mostly focused on the total amount of income and profitability,this paper focuses on the issue of income structure.Firstly,the mechanism of interest rate marketization on the income structure of banks is analyzed from two channels of "debt end" and "income end",different types of commercial banks are analyzed respectively.From the debt side,the impact of interest rate liberalization on the income structure of large commercial banks is not significant,and the direction is uncertain,which needs further research and testing.The impact on the income structure of joint-stock commercial banks is positive,while the impact on the income structure of urban commercial banks is negative.From the income side.marketization of interest rate has a positive impact on the income structure of large commercial banks,and a positive impact on the income structure of joint-stock commercial banks.The impact of interest rate liberalization on the income structure of urban commercial banks is not significant,and the direction is uncertain,which needs further research and testing.Next,this paper chooses fifteen listed commercial banks from 2003 to 2017,including five large commercial banks,five joint-stock commercial banks and five urban commercial banks.The trend of RI(ratio of net interest income to business income),RC(ratio of fee and commission income to business income)and RO(ratio of other income to business income)of different types of banks in China from 2003 to 2017 are shown in the form of a broken line chart.Then take fifteen listed commercial banks,five large commercial banks,five joint-stock commercial banks and five urban commercial banks as examples to analyze the relationship between marketization of interest rate and the change of income structure of commercial banks in China.It is found that RI is used to represent the income structure,and the marketization of interest rates has an inverse relationship with the income structure of large commercial banks,joint-stock commercial banks and urban commercial banks.lt is found that RC is used to represent the income structure,and the marketization of interest rate and the income structure of large commercial banks,joint-stock commercial banks and urban commercial banks change in the same direction.It is found that RO is used to represent the income structure,and the relationship between interest rate marketization and the income structure of large commercial banks,joint-stock commercial banks and urban commercial banks is fluctuant.Then we select relevant data and variables to measure income structure and interest rate marketization,make descriptive statistical analysis of variables,set up an econometric model,and estimate the parameters of income structure(RC).In order to ensure the reliability of the conclusions of this paper,the robustness tests of the alternative explanatory variables of income structure(RSV),the income structure of different types of banks(RC)and the new interest rate marketization index(IRM)are carried out respectively,followed by specific empirical discussions.Based on the above analysis,the following conclusions are drawn:there are some differences in the influence of interest rate liberalization on the income structure of different types of commercial banks.The impact on joint-stock commercial banks is the most significant,the effect of adjusting the income structure is the most obvious.The income structure of urban commercial banks has a certain degree of optimization,but the impact on the income structure of large commercial banks is not significant.In addition to imarketization of interest rate,the income structure of commercial banks is also affected by many factors,such as external regulatory pressure(CAR),asset size(AS),return on assets(ROA),risk level(NPL),money supply level(M2),macroeconomic level(GDP),etc.Finally,it puts forward countermeasures and suggestions for the optimization and adjustment of the income structure of domestic commercial banks.Considering the actual situation of China's financial market development,commercial banks are in a critical period of separate operation and transformation and upgrading.More attention should be paid to the transformation and upgrading of income structure through the implementation of integrated operation strategy.Looking forward to the future,if our commercial banks want to maintain the sustainable growth of business income,they must adjust and optimize its income structure by stabilizing net interest income,expanding net fee and commission income,developing other income and paying attention to interest rate risk management,so as to adapt to the competitive environment after interest rate marketization as soon as possible.