Research On The Impact Of Interest Rate Marketization On The Profit Model Of Commercial Banks

Since the 1990s, China launched the reform of interest rates, in the implementation of the interest rate market has made a lot of progress. With the central bank lending rate deregulation, the current deregulation of deposit interest rates is imperative. As China and the United States did not establish deposit insurance system and a series of software facilities escort, and financial disintermediation trend of development of China’s increasingly significant, our banks are facing unprecedented business challenges. The most prominent is the interest rate market-oriented reform is bound to make reliance on traditional bank interest income is affected, which is a huge impact on the commercial banks, commercial banks profit model is also bound to take a turn.This paper reviews the basis of interest rate reform on the course of learning, analysis of the interest rate reform, interest rate market experience of other countries in the world, practice, as well as the opportunities and challenges faced by each, and this process of commercial banks profit model the impact brought by the birth of the industry changes have been summarized and summarized. On this basis, the first starting from a theoretical perspective, the impact of changes in market interest rates of commercial banks on the traditional profit model generated a detailed analysis, followed by statistical data describe the current Chinese commercial bank profitability, and on former state-owned banks and joint-stock banks profit model were compared; the use of econometric software Eviews, on 12 representative bank last eight years of financial data model, combining theory with practice in order to apply their knowledge. Through theoretical analysis and empirical research paper, and draw conclusions and made several recommendations aimed at China’s commercial banks to better respond to the market interest rate level challenge suggestions.The article is divided into five chapters:The first chapter is an introduction. The second chapter is the theoretical basis of the literature review. The part about the financial repression, financial deepening theory, the theoretical basis of the interest rate market-oriented reforms conducted in-depth research. The third chapter is the qualitative analysis part. This section reviews the country’s market-oriented interest rate reform process, hope to understand the historical background on the subject of a more comprehensive and profound understanding. Through the introduction of commercial banks in other countries in the process of market of interest rates in earnings, and China do comparative analysis in order to find lessons learned. The fourth chapter is empirical analysis section. According to relevant theories to income ratio of commercial banks tradition and innovation on behalf of income between profit model, as explained variable, meso factor in inflation, monetary policy and other macroeconomic factors and industry concentration represented as well as commercial banks own variables as explanatory variables to establish a theoretical model of multiple regression analysis and empirical test. The fifth chapter is the conclusion and policy recommendations.