Under The Interest Rate Market Of China's Urbancommercial Banks'earnings Influencing Factors

The price of financial assets depends on the interest rate,and interest rate liberalization is an important part of financial liberalization and plays a decisive role in the process of interest rate generation.Since October 24,2015,the reduction of the benchmark deposit and loan interest rates and the reduction of the deposit reserve ratio have marked the basic liberalization of China's interest rate control,and financial market entities can independently agree on the price of financial products guided by the market.With the further development of interest rate liberalization,it has had an inevitable impact on the traditional business model of China's urban commercial Banks,which mainly relies on the deposit and loan interest rate differential as the main source of profits.While bringing some turnaround to the profitability of urban commercial Banks,it also makes them face unprecedented huge challenges.Therefore,this paper conducts a study on the profit impact of China's urban commercial Banks under the interest rate liberalization,and makes an in-depth analysis of its influencing factors and mechanism,hoping to provide some references for the path selection of China's urban commercial Banks' profit model.This paper focuses on the Angle of interest rate liberalization and elaborates the opportunities and challenges faced by China's urban commercial Banks in the wave of interest rate liberalization in combination with the theoretical background.The author specifically selected 30 representative commercial Banks with strong profitability in China as research objects,and took the relevant data from 2011 to 2018 as the sample to carry on the comparative empirical analysis test of multivariate linear regression to the eastern and central and western city commercial banks.From the current situation of city commercial bank profits,combined with the background of interest rate liberalization,to the net stable funding ratio,market share,intermediate business income ratio of total assets and non-performing loans ratio representative indicators as the core variable,analyzes its yields a representative for city commercial bank assets profitability indicators produced by the specific impact,and finally according to the results of the empirical research of this article research conclusion,the interest rate marketization of our country city commercial bank profit specific factors and direction.Finally,according to the research conclusion,the paper gives some Suggestions on how to further improve the profitability of China's urban commercial Banks in the process of interest rate liberalization,hoping to provide new ideas formaintaining the stability of China's urban commercial banking industry and the vigorous development of the financial industry.