Research On The Profit Model Optimization Of Huishang Bank Under The Background Of Interest Rate Marketization

On October 24,2015,the central bank announced to lower the benchmark interest rates on lending and deposits,for reducing the social cost of financing further more.Meanwhile,clean floats on deposits for financial institutions.This does not mean that the central bank is giving up the management of interest rates,but to set it much more depends on the market-based tool of monetary policy and transmission mechanism.And this marks that our country is entering a new stage about the deposit rates liberalization under the reform of interest rates since 1996,after the liberalization of interbank lending rates,bond rates,loan rates and discount rates.As an important market player,the commercial bank in our country was established in Shanghai since the latter part of 19 th century with profit model of spreads primarily,taking separate operation.As the economic reform is entering a new stage,how does the commercial bank resolve with the slow increase of profit growth is a problem that needed to be solved.And it is realistic to think about it from the view of the commercial bank.Firstly the article reviews the existed theories in both domestic and international researches,to point out the inevitability of the interest rate liberalization.Then the article analyzes the reform process of interest rate marketing in Japan and the US,with the influences on the commercial bank by the shifts in rate policy,pointing out that to develop the intermediate business is the important breakthrough of our commercial banks.On this basis,we take Huishang Bank as a case study,to find the problem in its profit model after analyzing its basic information and present situation.And finally,from the aspects of the product and the services,the channel instruction,the business model and the customer structure,facing the main risks and the uncertainty,how to optimize the profit model.