Research On The Impact Of Financial Demediation On Bank Efficiency Under Interest Rate Marketization

On February 1st,2023,the China Securities Regulatory Commission announced the full implementation of the stock issuance registration system reform.In recent years,as financing mechanisms have continued to improve and the market has expanded,indirect financing led by commercial banks is no longer the primary financing option for enterprises.The financial market has shifted from a situation dominated by commercial banks to a diverse scene of various financial institutions.Meanwhile,the Loan Prime Rate(LPR)system was officially implemented in August 2019,marking a new stage in interest rate liberalization reform.Faced with the changing macroeconomic situation,the operating environment of commercial banks has undergone profound changes.Against this background,it is particularly important to research the relationship among the Interest rate marketization,financial disintermediation,and bank efficiency.This article conducts theoretical analysis and empirical research on the impact of financial disintermediation on the efficiency of commercial banks,and how the regulatory effect of interest rate liberalization on the impact of financial disintermediation on the efficiency of commercial banks.The article first reviews relevant literature and theoretically discusses the relationship among the three factors.Then,using data from2011 to 2021,the article estimates the profit and cost efficiency of 43 commercial banks,financial disintermediation index,and interest rate liberalization index.Based on the Tobit model,the article further verifies the impact of financial disintermediation on the profit and cost efficiency of commercial banks and studies the differences in the effects among commercial banks with different levels of comprehensive operations.On this basis,the article further verifies the regulatory effect of interest rate liberalization on this impact and the heterogeneity of the regulatory effect among commercial banks with different levels of comprehensive operations.Finally,to ensure the robustness of the conclusions,the article uses truncated data and two-stage least squares method to demonstrate the model’s robustness and indigeneity issues.Based on theoretical and empirical analysis,the research findings of this article are as follows: 1)Financial disintermediation will have a correction effect on the profit efficiency and cost efficiency of commercial banks,and there are significant inter-group differences in the correction effect among commercial banks with different levels of comprehensive operations.2)Interest rate liberalization will have a positive regulatory effect on the impact of financial disintermediation on the profit efficiency of commercial banks and a negative regulatory effect on the impact of financial disintermediation on the cost efficiency of commercial banks,and there are significant inter-group differences in the regulatory effect among commercial banks with different levels of comprehensive operations.This article’s main contributions are: 1)Introducing regulatory effects and using empirical methods,this study investigates how the impact of financial disintermediation on the efficiency of commercial banks changes with the continuous advancement of interest rate marketization reform,supplementing existing research;2)grouping commercial banks based on their degree of comprehensive operations to enrich the study of how financial disintermediation and interest rate marketization affect different commercial banks.