Reach On The Change Of Commercial Banks’ Profit Model In The Process Of Interest Rate Market In China

It can be seen from the CBRC statistics, by the end of 2014, China’s banking assets reached 172.3 trillion yuan, an increase of 13.88 percent, liabilities reached 160 trillion yuan, an increase of 13.36%. Net profit of 1.56 trillion yuan, an increase of 9.65%; from 2008 to 2013 five-year period, the annual net profit growth is 30.56%, 14.58%, 34.53%, 36.32%, 19.00% and 14.52%. This series of data suggesting that growth in China’s banking industry profits year by year, and has fallen into single digits; With the acceleration of China’s interest rate market-oriented steps, the banking competition, and so on, China’s banking industry will be difficult again achieve more than 20% of net profit growth record. Thus changing profit model, an increase in non-interest income, to develop low-cost, low risk, high-yield innovative intermediary business to increase operating profit of commercial banks is currently the top priority.Firstly, the interest rate on domestic and foreign research about the market impact of commercial banks profit model made a brief introduction, followed by commercial banks profit model for the United States, Germany and Japan in the background of the interest rate market changes are described, and which summarizes some experience, China’s commercial banks in order to successfully change the profit model for reference. Then it analyzes the current situation of China’s commercial banks profit model, and the corresponding results obtained from data analysis; learn from foreign commercial banks profit model transformation based on the success, to draw some deficiencies exist in our bank. Base 30 to 16 banks quarterly data for the sample group, the first step to study the impact of net interest income on bank profitability, obtain intermediate business income contribution to operating profit is greater than the net interest income. Deep understanding of the impact of China’s commercial banks intermediate business level of profitability, with operating costs, the NPL ratio has established panel model as explanatory variables to explore comparative analysis of large state-owned banks, joint-stock banks, city commercial banks in three different types, respectively Bank of intermediary business impact of differences in profitability, the conclusion is to increase the proportion of intermediary business can significantly move up the bank’s profitability. China’s commercial banks to some extent, still rely on interest income to obtain operating profit, a lower proportion of intermediary business, intermediate business innovative too few, there are development banks of a gap; increased intermediate business income can make the bank a substantial increase in operating income. Conclusion is currently China’s commercial banks profit model to some extent, still rely on interest income, a lower proportion of intermediary business, intermediate business innovative too few, there are development banks of a gap; intermediate results in the empirical part of Chinese Commercial Banks revenues to improve banking profits have high efficiency, city commercial banks is greater than the pulling effect is greater than the state-owned banks for joint-stock banks intermediate business bank profitability, the bank profit model transformation process its profitability by asset size, operating costs and other factors. Policy recommendations of this paper is that the current China’s commercial banks should change the profit model, still focus on traditional interest income; different commercial banks should be based according to their own characteristics and advantages, and take the road of difference there is change; changes in business philosophy, and strengthen to profit center; strengthen operational risk management and control; increase investment in manpower and technology; strengthening information construction, build smart banking; configuration of strong resource and cost management.