Research On The Impact Of Deposit And Loan Spreads On The Profit Of Commercial Banks In China Under The Background Of Interest Rate Liberalization

In the third plenary session of the 14th national related leaders for the first time put forward the relevant content of interest rate marketization reform must be conducted,and then opened the curtain of the reform of interest rate in our country.November 4,2015,premier li keqiang on the conference stressed that must determine the interest rate marketization reform further deepening,and we will improve the mechanism of formation and regulation of interest rates.In the economic system of our country,commercial Banks play its important role in the economy,it has always been active in the market economy in our country,is one of the important media contact to monetary policy and currency,is China's central bank and residents and enterprises such as bridge connection,to control the development of market economy,capital circulation and related aspects such as the conduct of monetary policy has a certain influence.Interest rate marketization reform and marketization of exchange rate always is the key of the financial market in our country.As the Chinese government for accelerating the pace of interest rate marketization,our country's commercial Banks is not only felt the warm sun,also suffering from cold test.Its positive role is to make our country commercial bank has the right of full freedom to determine the price of products,improve the commercial bank for cash price of independent pricing power and competitiveness,accelerate the capital market of our country's product innovation and service innovation in financial markets;To build a relatively fair competition environment.However,we found that compared with other countries of the economic strength is relatively strong,the content of the marketization of interest rate in China put forward relatively late,obviously lags behind other countries,is still a relatively less sound market,therefore,interest rate marketization is inevitable bring about the difference between the deposit interest rate and loan interest rates narrowed,and the phenomenon of interest rate volatility,and therefore a subtle impact on commercial Banks' profits.In addition,in China,the long-term interest rate controls makes our country's banking industry has a "super stability",and the market-based reform of interest rates will lead to Banks to attract customers,absorb deposits between competition,credit risk,interest rate risk is aggravated.First of all,this paper briefly analyzes the theoretical function of interest rate,and then analyzes the economic background of the interest rate cuts in the past two years.The analysis on the structure of interest rate and interest rates of commercial banks in China,and combine it with the theory,using the data to analyze the interest rate policy can play a better role,found that the conduction mechanism of low interest rate elasticity of consumption,savings can hinder the interest rate,this paper makes an empirical Research on the analysis of the selected topic,the bank net profit rate as the dependent variable,the introduction of GDP,deposit and loan spreads,interest rates,bank lending and other variables to establish the multiple regression equation,and analyze the test using SPSS and Eviews8.0 software,and according to the regression data and the corresponding test results and draw relevant conclusions and suggestions.Based on the analysis of the final test results,we believe that the impact of interest rate liberalization on the profits of commercial banks is very significant.With the completion of the interest rate market,China's commercial banks will inevitably be somewhat inappropriate,and the ensuing deposit and loan spreads continue to narrow,bringing the bank's net interest rate decline embarrassing scene.There is on the net interest income to support the phenomenon of profit in China's banking industry,in the interest rate market trends,bank profits are visibility risk,in addition,we also found that the interest rate(S)and the size of bank loans(RD)changes in the bank net interest rate has lagged behind.Therefore,the current interest rate fluctuations,the bank must make changes in asset structure,due to the current interest rate volatility will increase,the bank net interest rate so that banks must seize the opportunity,make higher profits.As for the control of the loan,the bank must strictly grasp the current situation,because the loan will affect the bank net interest rate of bank profits.As the scale of the loan changes,the banking sector must be well prepared to avoid the transitional effects of profits.