Research On The Impact Of Interest Rate Marketization On The Profitability Of Commercial Banks

As a means of national macro-control,interest rate has been controlled by the government.In the 1970 s,after McKinnon put forward the "financial repression theory",various developed countries successively deregulated interest rates,and the interest rate liberalization reform set off a global wave.China's interest rate liberalization reform began in 1996 and has lasted for 23 years.During the reform period,China gradually liberalized the monetary interest rate,bond interest rate and deposit and loan interest rate,and the decision of interest rate was transferred from the central bank to financial participants.Commercial Banks occupy a dominant position in the whole financial market.The reform of interest rate liberalization has promoted the innovative development of commercial Banks,provided impetus for the business expansion of commercial Banks,and facilitated the transformation of the single business structure of commercial Banks to the comprehensive business structure.But at the same time,the reform of interest rate liberalization also makes commercial Banks face many problems.The narrowing of net interest margin directly compresses the profit space of commercial Banks.Excessive competition among Banks for market share has led to increasing credit risk.This article selects 16 listed Banks from 2008 to 2017 data as the research object,studies the influence of interest rate marketization of commercial bank profitability,research into the overall study and sample points,sample subdivided into state-owned commercial Banks,joint-stock commercial Banks and city commercial Banks three categories,through further subdivision of sample points,better for different types of commercial bank effective policy Suggestions are put forward.The paper is divided into five parts: the first part is the introduction part,which introduces the research background and significance of the paper,the literature review at home and abroad,the research content and methods,the innovation and shortcomings of the paper,and lays the foundation for further theoretical analysis and empirical analysis.In the second part,relevant knowledge is sorted out from the two aspects of interest rate liberalization and commercial Banks' profitability,and relevant concepts of interest rate liberalization and commercial Banks' profitability are introduced,paving the way for the selection of subsequent variables.The third part is the theoretical analysis part,which analyzes the influence of interest rate liberalization on the profitability of commercial Banks from three perspectives.The fourth part is the empirical analysis part,the selection is ROA as explained variable,net interest margin as the explained variable,capitaladequacy,LDR,GDP,M2 growth rate as control variable,non-interest income ratio,non-bank social financing proportion,non-performing loan ratio as intermediary variables,regression analysis is carried out for the sample Banks' overall first,after the overall further subdivided,of state-owned commercial Banks,joint-stock commercial Banks and city commercial Banks for regression analysis,finally from the replacement be explained variable,endogenous,and control the time effect,processing,introducing virtual variable robustness test,quantile regression;The fifth part makes policy Suggestions on how to improve the profitability of commercial Banks in the process of interest rate liberalization based on the previous analysis.Through the research,it is found that the interest rate liberalization reform has brought different degrees of impact on the profitability of different types of commercial Banks,and Banks need to formulate a set of development strategies suitable for themselves based on their actual conditions.However,from the perspective of the overall economic environment of listed commercial Banks,the development trend of commercial Banks in the future will be diversification,specialization and innovation.