Interest Rate Liberalization, Diversified Operations And Commercial Bank Performanc

In recent years,China’s interest rate marketization has entered the stage of deepening development,and commercial banks have lost the protection of interest margin,the net interest margin has been shrinking,the profit space of traditional credit business has been shrinking,and the business development is facing serious challenges.In order to cope with the impact of interest rate liberalization,commercial banks have continuously improved their diversified operation level,increased innovation and increased non-interest income.However,diversification is like a double-edged sword,although it has a positive effect on performance improvement,it may also bring potential risks.Based on this,the study of the relationship between interest rate marketization,diversification and commercial bank performance is not only conducive to commercial banks to coordinate the relationship between traditional credit business and non-interest business,rational diversification,but also better prevent operational risks,which has important theoretical and practical significance.The relevant contents of this paper are as follows: First,from the perspective of literature research,analyze the current research results;Second,define the relevant concepts,sort out the basic theories,analyze the internal logical connection,and put forward the research hypothesis of this paper;Thirdly,construct a panel model for empirical analysis to verify the research hypothesis;Fourth,select China Merchants Bank as a typical case to confirm the empirical conclusion again from the micro perspective;Fifth,draw the final conclusion and put forward relevant suggestions.The conclusions of this paper are as follows:(1)Interest rate marketization negatively affects the performance of commercial banks.(2)The marketization of interest rates promotes commercial banks to carry out diversified operations.(3)Diversification plays a regulatory role in the relationship between interest rate marketization and commercial bank performance,but this regulatory role is more significant for large and medium-sized commercial banks.Based on the above conclusions,this paper puts forward the following suggestions: at the government level,first,deepen the market-oriented reform of interest rates and give full play to institutional advantages;Second,optimize the regulatory system and create a good development environment.At the bank level,first,promote business diversification and implement differentiation strategy;Second,strengthen operation management and improve the ability to resist risks.