Discussion On The Profit Model Of Minsheng Bank Under The Interest Rate Marketization

The reform of interest rate liberalization started in 1996 and has been for more than two decades.In 2013,China began to cancel the lower limit on interest rates for loans,marking the basic completion of interest rate marketization reforms.The implementation of the interest rate liberalization policy has a huge impact on China's financial industry,breaking the original situation of a single financial market and rationalizing the allocation of market resources.Commercial banks are an important component of China's financial industry,and the reform of interest rate liberalization has had a major impact on them.Commercial banks need to recognize that marketization of interest rates is a double-edged sword that can promote the effective allocation of market resources,improve the status quo in the financial market,speed up bank transformation,enable financial institutions to serve the real economy well,and make commercial banks The difference between the interest rate of loans and the increase in the scale of non-performing assets has affected the normal operation of commercial banks and has affected the traditional profit model of banks.Therefore,how commercial banks should adjust is an urgent problem to be solved.This paper analyzes the profit model of China Minsheng Banking Corporation,finds its problems in the process of marketization reform,and proposes relevant improvement measures to provide a theoretical basis and a practical direction for the reform of the banking industry.This article mainly analyzes the impact on China Minsheng Bank under the background of interest rate liberalization.The full text adopts a combination of theory and case studies,and analyzes the specific performance of Minsheng Bank in the reform of interest rate liberalization.First of all,in the theoretical research part,this paper introduces the relevant background,research significance and ideas,reviews domestic and foreign scholars' research on the profitability model of commercial banks under interest rate liberalization.Then proceeds to the concept of the interest rate liberalization,the development process,and the profitability model of commercial banks.The concept and main types are explained in detail,and the patterns of income-led and non-interest-benefit models,as well as the factors affecting the profitability model of commercial banks and the comprehensive evaluation index system of profitability are further discussed.Secondly,in the field of case studies,this paper selected China Minsheng Bank,introduced the basic situation of Minsheng Bank,and analyzed the current status of Minsheng Bank's profit model from the asset-liability structure,income structure,and capital structure.Then,from the aspect of profitability level,management level,asset quality,and liquidity level,the main financial indicators were selected to evaluate the performance of Minsheng Bank's profit model under interest rate liberalization.It is found that under the marketization of interest rates,Minsheng Bank has problems relying on interest rate spreads,imbalanced loan-to-deposit ratios,and immature development of intermediate businesses.It focuses on analyzing the root causes of problems in Minsheng Bank.Finally,according to the case analysis,we propose measures to improve the profitability model of Minsheng Bank.Minsheng Bank should follow the trend of interest rate liberalization and identify the market positioning of the firm.If it insists on the core business of the bank,it will rationally adjust the profit structure and make use of the flexibility of the firm and focus on differentiated development.At the same time,it uses means to evade interest rate risk,improve the bank's ability to independently determine pricing,use FTP to increase the bank's value-earnings return rate,improve asset financing methods,adjust debt structure,use electronic products and modern technologies to explore business innovation,and reduce dependence on interest rates.It should also establish a brand effect,improve the service quality of commercial banks,pay attention to the management and cultivation of human resources,actively respond to market competition and ultimately optimize the profit model.