Research On The Profit Model Of Chinese Commercial Bank Under The Marketization Of Interest Rate

During the long time when the interest rate were controlled, China’s commercial banks which were still relying on stable interest income, can achieve a high level of profits easily. In recent years, as China’s market-oriented interest rate reform forward, in terms of assets or liabilities side, commercial banks will be faced with fierce price competition, the net interest income of commercial bank will also be affected, which will affect the overall level of profitability of China’s commercial banks. The traditional profit model of Chinese commercial banks is facing an unprecedented challenge. Therefore, under the background of marketization of interest rate, commercial banks must change the profit model, in order to ensure its stable profitability which is related to every commercial bank of vital importance.Firstly, I analyses the China’s market-oriented reform of interest rate and its impact on commercial banks, followed by a comparative analysis of the performance of the United States, Japan, Hong Kong SAR, India and Chile market interest rates reform practice and commercial banks, and sum up the experience and lessons; Then, using the operating financial data in recent years of commercial banks listed on the A shares, firstly, I analyzes the composition of the total income, then make a concrete analysis of the composition and change tendency of two kinds of income, describing the current status of the profit model of commercial bank of our country, and pointing out the existing problems. Then, using the data from the first quarter of 2008 to the second quarter of 2015 of 14 commercial banks listed on the A shares, using the panel data regression model, I analyzes the influence degree of net interest income and intermediate business income to net profit, and then the comparatively analyzes the influence of profit model on the profitability of different types of commercial banks,obtaining that the intermediate business income can contribute to improve the profitability of commercial banks, which shows differences between different types of commercial banks. Finally I suggest that the commercial bank of our country should focus on the development of traditional spread business, develop the intermediary business, improve the ability of pricing, enhance their ability of the risk management, and cost control, to change the profit model.