Analysis Of Influencing Factors Of Commercial Banks In China Under The Interest Rate Marketization

The net interest margin is the main source of commercial bank profits and an effective indicator for the evaluation of commercial bank pricing power of deposit and loan.In the meantime,it is also one of the most significant indicator for measuring the intermediary efficiency of banks as financial intermediaries.Therefore,the net interest margin reflects the operating efficiency of the bank itself,but also the intermediary transaction cost and efficiency of the bank as the main body for social indirect financing.In the background of the traditional interest rate control,the benchmark deposit and loan spreads are the main factor affecting the net interest margin of Chinese commercial banks.Along with the marketization of interest rates gradually advancing and deepening,and the release of restrictions on the deposit and loan spreads of Chinese banks,banks increasingly have more autonomy about the interest rate of deposit and loan.To a certain degree,these changes can produce some adverse impacts on the commercial banks net interest margin,even greater pressure for the banking industry profitability,and also much heavier competitive pressure between commercial banks.It is worthy to consider how commercial banks face kinds of challenges in the process of the marketization of interest rates and eventually form an effective independent pricing model,as well as how the marketization of interest rates continue to develop in the transition stage of bank operation mode.Consequently,it is significant and meaningful to research the influencing factors of the commercial banks net interest margin in the process of the interest rate marketization.This paper,based on the theoretical model of Maudos & Solis(2009),adding some determinants of the net interest margin to extend the model concerning the actual situation of our country,selects the panel data of each quarter from 2008 to 2014,and makes an empirical analysis on the influence of the net interest margin from the internal factors and the external factors.The results show that:(1)The factors influencing the net interest margin of commercial banks are the intermediate business profitability,the operating efficiency,the growth rate of GDP,the variation and trading scale of the benchmark spread,the operating costs,the risk of credit,and the rate of inflation,etc.(2)The influence factors on net interest margin are discrepant among state-owned banks,joint-stock commercial banks and city commercial banks: the main factors of state-owned banks are the credit risk and the trading scale;the main factors of joint-stock banks are the average operation costs,the risk of credit,the transaction size,the operating efficiency,the benchmark interest rate,and the growth rate of GDP;the main factors of city commercial banks are the average operation costs,the trading scale and the inflation rate.The empirical results are not only meaningful for commercial banks improving their managerial and administrative expertise but also valuable for relevant departments adopting macroeconomic policies to steady the macroeconomic operation.Through the empirical results,the paper,in the end,respectively proposes reasonable policy recommendations aiming at state-owned banks,joint-stock commercial banks and city commercial banks.