Research On The Impact Of Interest Rate Marketization On The Profit Model Of Small And Medium Listed Banks

At the moment,China's economic development has been reached a new stage of the economy,our economic structure is adjusting deeply,and our economy is slowing down.Under this context,the ending of market-oriented reforms of interest rate is driving,which makes the traditional profit models in our small and medium-sized listed banks based on interest margins facing huge challengesand the future competitionin China's banking industry will be more intense.Compared to large state-owned banks,small and medium-sized listed banks have small capital,rely more oninterest margins and face more highlighted risks and opportunities.Therefore,in the context of the gradual improvement of interest rate liberalization,it is very important for small and medium-sized listed banks to seek the transformation of profit model to ensure stable income and achieve sustainable and healthy development.This paper carries out the in-depth analysis ofthe status quo and problems of profitability model of the small and medium-sized banks in China under the interest rate market by using a variety of analytic tools.The status quos are concretely expressed as: the proportion of net interest income of China's small and medium-sized listed banks is high;the proportion of the middle businessis low although it shows a growth trend;interest income relies more on the deposit and loan business;intermediate businesses are underdeveloped,still based on traditional business.The problems are mainly reflected that the traditional businesses are affected;the rising of non-performing loan rate increases the credit risk;the homogeneity of intermediate business is serious;thus blindly expanding for income.At the same time,it summarizes the positive and negative effects of interest rate liberalization on small and medium-sized listed banks.Positive effects are reflected in promoting its fair competition,optimizing the business structure,improving the management mechanism and promoting financial innovation;negative effects are reflected in impacting its business development,customer structure and pricing capabilities,increasing the risks and the difficulty of asset and liability management.Besides,taking the quarterly data of the latest annual report from 2008 to 2016 as their samples,this paper uses the panel data model to carry out the systematic empirical analysis based on that analysis of the small and medium-sized listed banks are divided into the joint-stock banks and the city commercial banks.The results show that the interest rate liberalization can promote the transformation of the profit model in the small and medium-sized listed banks,which influence of profit model for the commercial banks is larger than the joint-stock banks.The improvement of the loan,the increase of the money supply and the decrease of the cost-income ratio have a positive effect on the profit model of the small and medium-sized listed banks;however,The expansion of asset size,the improvement of non-performing loan ratio has a negative impact on the transformation of profit model of the small and medium-sized listed banks.Finally,it sums up the research conclusions in detail,and puts forward some suggestions are put forward for the transformation of the profitability model of the small and medium-sized banks in China under the interest rate market.Including: implementingthe differentiated business strategy,innovatingthe profit model of traditional business,enhancing risk controllingcapabilities,strengtheningthe effective management of assets and liabilities,and improving asset pricing capacity.