The Impact Of Term Structure Of Interest Rate On The Profitability Of Commercial Banks

In recent years,China's macroeconomic and financial environment has changed.The quantitative monetary policy with the M2 as supply has gradually become ineffective.Monetary policy is transforming into a price-based regulation with interest rates as the intermediate target.However,the transformation still has a long way to go.Based on the analysis of the price-based monetary policy transmission mechanism,this paper discusses the impact of the term structure of interest rates on the profitability of commercial banks,and refers to the dilemma of the current price-type monetary policy transmission to the real economy.This paper collects and constructs the term spreads,credit spreads,and quarterly net interest margin data of 14 listed banks during 2008Q3-2018Q3.According to the regression results,the net interest margin of commercial banks in China is generally insensitive to the term structure of interest rates,so it is difficult to respond to price-based monetary policies in a timely manner in the loan business.In terms of bank types,the net interest margin of large commercial banks is basically insensitive to the term spread;while a small number of small and medium-sized banks are more sensitive to changes in term spreads.The possible reason for the latter is that the deposit cost of small and medium-sized banks is greatly affected by the interbank money market interest rate.Finally,based on the research results,this paper proposes policy recommendations to accelerate the transformation of monetary policy.