Research On JL Bank’s Profit Model In The Process Of Market Interest Rate

The change of interest rate is very important to promote the reform of the financial system,it can be used as the pricing basis of financial products,so as to promote the liberalization of interest rate.With the deepening of interest rate liberalization reform,the traditional deposit and loan interest margin of commercial banks is shrinking,which poses a challenge to the future profit model.The profit model of commercial banks relying on the traditional deposit and loan interest margin has been unable to achieve sustainable development.Therefore,how to effectively solve these problems and reduce the dependence on the traditional deposit and loan interest margin business is an urgent problem for small and medium-sized commercial banks at present.Urban commercial banks should take root in regional and local economy,base on urban residents,small and micro enterprises and users,and give play to the local characteristics of urban commercial banks.Under the influence of interest rate liberalization,a series of changes have taken place in the profitability of urban commercial banks.With the deepening of interest rate reform,its impact has appeared in some underdeveloped areas,resulting in an endless stream of problems such as increased credit risk,higher non-performing assets rate and unbalance profit structure.In the face of this situation,city commercial banks should purify and renew their intermediary business,take the market demand as the orientation,constantly accelerate the upgrading of profit model,and constantly expand the development space of intermediary business.For JL bank,the dividend of interest rate liberalization gradually disappeared,and was restricted by many factors such as cost scale development,scientific and technological innovation,and relevant personnel training.The space for innovation and development is also correspondingly limited.Under the background of interest rate reform and opening-up,how to break the inherent shackles and seek new changes is a severe test for JL bank which is located in Jilin Province and has not been listed.This paper expounds the development status of city commercial banks,introduces the interest rate liberalization reform faced by city commercial banks on the macro background,summarizes several profit models of commercial banks from the research status of domestic and foreign scholars,and reviews the development history of JL bank by taking JL Bank as the starting point.And combined with the interest rate liberalization reform analyzes the status quo of JL bank profit model.At the same time,combining with the financial statements of JL Bank in recent five years,the specific composition of JL bank’s operating income is analyzed,the impact of interest rate liberalization on the profit model of JL bank is analyzed,and the problems and new trends of JL bank are summarized.It is concluded that the profit model of JL bank is mainly based on the interest income of assets and liabilities,which is mainly manifested in the loan interest income.There is also a small part of non-interest income,among which the commission and commission income and other business income occupy the main part.Finally,combining the theory and the analysis of the current situation of JL bank’s profit model,the paper puts forward suggestions for the improvement and development of JL bank’s profit model.First,by improving its bargaining power,the interest rate spread should be maintained at a stable level and the refined management should be strengthened.Second,through the innovation of intermediary business,realize the diversification of intermediary business development,reduce the dependence on interest income.Third,pay attention to the situation of enterprises’ non-performing assets,effectively resolve non-performing assets through various means,increase disposal efforts,and effectively prevent and control risks.Fourth,expand capital supplement channels to ensure capital adequacy ratio.Fifth,accelerate the construction of interdisciplinary talents and information investment,and give full play to the advantages of the integration of Internet and banking and finance.