The Empirical Research Of The Determinants Of Bank Net Interest Margins On China

It is a key thing for our country'marketable interest rate reform to marketizing of deposits rate and lending rate. The speed of marketable interest rate is determined by commercial bank'pricing ability. The research of the determinants of net interest margins in the marketable interest rate reform can reflect the result of marketable interest rate and is good for asset-liability management of commercial bank. This paper use panel data design appropriate variable based on our country's fact to test empirically the determinants of bank net interest margins for the first time. We can find from the research: first, bank net interest margins are determined by capital base, implicit interest margins payments, the opportunity cost of reserves, liquid risk and benchmark interest rates . Capital base, implicit interest margins payments, liquid risk and benchmark interest rates have positive impact on net interest margins while the opportunity cost of reserves have negative impact on net interest margins. Secondly, net interest margins are less sensitive to benchmark interest rates than before along with marketable interest rate reform. The data also show the determinants of city commercial bank'net interest margins is different from the determinants of cross regional bank'net interest margins. Capital base has positive impact on the cross regional bank and has few impact on the city commercial bank. Benchmark interest rates impact on the city commercial bank'net interest margins are more sensitive than impact on the cross regional bank. Thirdly, we find the better financial ecology, the higher net interest margins. Finally, the most different thing between the determinants of net interest margins of our country and the determinants of net interest margins of foreign country is our country'net interest margins are affected by benchmark interest margins...