Empirical Study On The Effect Of Interest Rate Marketization On The Performance Of Listed Commercial Banks In China

As the price of capital,the interest is core of a country's finance and economy and has regulating effects on capital market and monetary market for a country.Especially on financial market,the changes in interest will affect the stabilization and safety of financial market and then have a huge impact on the national economy.Therefore,the interest is one of the most important tool in adjusting macro-economy.All countries around the world used to have rigid control on interest and regulated national economy by adjusting interest.In1973,theories about the interest rate marketization was put forward by R.LMckinnon and E.Shaw and after that,America and other countries began implementing interest rate marketization reform.Interest rate marketization reform is very important for a country and the extent of interest rate marketization also represent stages of a country's economic development,China has liberalized inter-bank lending rates in 1996 which represented the beginning of interest rate marketization reform.And then,China has published many policies and liberalized rate of bond,money,loan and deposit so that the determination of interest rate is depend on the relation between supply and demand.Until October 23 in 2015,the people's bank of China liberalized the upper limit of deposit which means our country has completed interest rate marketization reform.In around 20 years,our country has completed bond rate marketization,monetary rate marketization,loan and deposit rate marketization.In China,commercial banks play very important roles in financial market.Their stabilization and safety has huge impact on financial market and economic development.In the process of market-oriented interest rate reform,to study the effects of interest rate marketization on China's listed banks,not only conducive to the listed banks to adapt to the new context of the banking industry's overall operating environment,actively learn from the development experience of the rival commercial banks,effectively respond to fluctuations in interest rates in the market,moreover,it is of great significance to reduce the friction costs of social capital financing,to improve the efficiency of economic operation,and to reduce the mismatch of financial market resources.This paper selects the panel data of 16 listed commercial banks in China from 2008 to 2015,mainly uses the methods of qualitative analysis and quantitative analysis.I first scale the interest rate of marketization rate,then do the empirical analysis and obtain how the interest rate of marketization affect banks' return on assets and non-performing loan ratio according to the results of the empirical analysis,at last,put forward some suggestions to this result.The results show that: the interest rate of marketization has an inverted u-shaped relation with the return on assets of commercial banks,and has an u-shaped relation with the non-performing loan ration,net interest margin and non-interest income has positive influence to the bank return on assets,the GDP growth rate and the nonperforming loan ratio has a significant negative correlation.