The State And Improvement Of Bank Profit Pattern Under The Interest Rate Speads

In recent years, Chinese banks have had harvest performances. But the performances ofbanks depend on the interest rate spreads for S&L, the banks form a profit pattern that is theinterest rate spreads dominant. With the development of interest rate liberalization, People’sBank of China has decided to open the control of lending rate in financial institutions andcanceled the0.7times’ floor of lending rate since July20,2013. According to the commercialprinciple, financial institutions can decide the lending rate by themselves. With the developmentof interest rate liberalization, commercial banks will face serious challenges because of relyingon the profit pattern which can obtain high profits. The government opens the control of interestrate and allows banks to price the interest rate by the market. Because the interest rate spreadsfor S&L narrow from interest income and the interest payments two-way squeeze profits, it willhave a big influence on the profitability of the banks, The banks will face a big test if it cancreate a pleasing results in the future. It will be an urgent and important issue for commercialbanks and academics that is how the commercial banks to improve their profitability steadilywith the change of interest rate spread for S&L. Under the research of gains spreadsphenomenon by professor Zhao, this paper researches gains spreads which influence on Banks,that is the fluctuation of the interest rate spreads for S&L impact on the profitability in the banks.This paper provides more advice for the banks to change their profit pattern from the interestrate spreads dominant to the intermediary business dominant.In this paper, the first chapter introduces the background of the research problem; Thesecond chapter makes clear the meaning of profit pattern and the interest rate spreads; Thethird chapter analyzes the earning performance of stock-listed commercial banks according tothe annual report data, then compares the traditional industrial enterprises which is on behalfof the real economy with stock-listed commercial banks. The third chapter analyzes thecurrent profit structure on the basis of high profits from the banks and gives a conclusion thatthe banks form a profit pattern that is the interest rate spreads dominant. The fourth chaptermainly uses the method of empirical analysis to the factors affecting the profitability of thebanks, such as interest rate spreads, intermediary business proportion and so on. At last, thispaper provide some suggestions to maintain even improve the bank profitability during thetransformation of profit pattern and interest rate liberalization,...