Research On The Impact Of Net Interest Margin On Credit Risk Of Commercial Banks In China Under The Background Of Interest Rate Liberalization

At present,the overall domestic financial environment is becoming increasingly open and the economy is growing rapidly.As the People’s Bank of China announced on October 23,2015 that it would no longer restrict deposit and loan interest rates,China’s interest rate liberalization reform was basically completed.Under the background of interest rate marketization,commercial Banks increasingly competitive,increasingly complex economic environment,the most direct consequences of interest rate liberalization is the commercial bank loan interest rate changes frequently,the loan interest rate eventually led to the fluctuation of net interest margin,net interest margin volatility enhancement caused the possibility of increased risk of commercial bank credit.Commercial banks occupy an important position in the entire financial market and are an important part of supporting economic development.The increase of credit risks of commercial banks will not only affect themselves,but also affect the stability of the entire financial system.Interest rate liberalization not only has a profound impact on the development of commercial banks,but also has a close connection with the credit risks of commercial banks.Therefore,it is necessary to conduct research on the credit risks faced by domestic commercial banks based on interest rate liberalization.This topic focuses on the background of interest rate liberalization in China,studies the research results related to this topic,conducts a detailed theoretical analysis of the impact of net interest margin on credit risk of commercial banks under the background of interest rate liberalization,and specifically analyzes how the change of net interest margin affects the credit risk of commercial banks.The influence of net interest margin on credit risk of commercial banks can be divided into direct influence and indirect influence.The direct influence is mainly manifested as the increase of net interest margin fluctuation under the background of interest rate liberalization,which has an impact on credit risk of commercial banks.The indirect impact is mainly reflected in the fluctuation of net interest margin,which first leads to interest rate risk and operational risk,and finally to credit risk.According to the theoretical analysis,the relevant research hypothesis is proposed:the change of deposit and loan rates caused by interest rate liberalization leads to the fluctuation of net interest margin of commercial banks.The lower the credit risk of commercial banks,the smaller the net interest margin.Based on the relevant data of Chinese commercial banks,this paper analyzes the impact of net interest margin on the credit risk of Chinese commercial banks under the background of interest rate liberalization by using multiple linear regression.The empirical results show that the smaller the credit risk of commercial banks,the smaller the net interest margin.Based on this conclusion,the author puts forward feasible suggestions based on the knowledge learned to help commercial banks prevent credit risks,so as to better adapt to the interest rate marketization environment.