Effect Of Interest Rate Marketization Onchina's State-owned Banks Profitability

In the context of global economic integration and the rapid development of China's financial market,interest rate market reform as an important part of China's financial system reform,has far-reaching impact and significant significance.Strictly controlled interest rate system cannot adapt to China's financial market development,interest rate market reform is imperative.Since 1996,China's interest rate market reform in a steady and orderly manner,has experienced a preliminary attempt and steady progress stage,the initial reform results significantly.State-owned banks are the mainstay of the banking industry.The good operation of the state-owned banks is a powerful booster to promote the development of the real economy.It has the important significance of serving the macro economy,promoting regional economic development,and upgrading the industrial structure.In this paper,the comparative analysis,empirical analysis and quantitative analysis are used to discuss the impact of interest rate marketization on state-owned banks and put forward specific countermeasures.First of all,summed up the process of China's interest rate marketization,summed up the successful experience of the US and South Korea's interest rate market reform,drawing on foreign advanced experience put forward to further promote China's interest rate market reform and bank profitability.Then,from 2007 to2016,panel data of 5 state-owned banks about net interest margin,bank size,income structure,non-performing loan ratio,loan-to-deposit ratio,cost-to-income ratio and macroeconomic data were collected,and the influencing factors of interest rate marketization on the profitability of state-owned banks were analyzed empirically.It is pointed out that net interest rate is still an important way of bank income,but under the condition of interest rate marketization,we should attach great importance to the influence of the difference between deposit and loan on the profitability of state-owned banks.The positive impact of the income structure on the profit of the state-owned banks indicates the path for developing the development strategy.The negative impact of non-performing loan ratio on the profitability of state-owned banks indicates that the importance of risk management and control in the operation and management of state-owned banks and the necessity of risk management to adapt to business strategy.The cost-to-income ratio has a negative impact on the profitability of banks,and the relatively low ratio of operating expenses to operating efficiency seriously affects the profitability of banks.Then,the data of the net profit of thestate-owned banks,the growth rate of the net profit,the growth rate of the operating income,the difference between the net interest income and the benchmark interest rate of the short-term deposit and loan are listed in the process of interest rate marketization.Further analysis of the state-Impact.But also targeted to promote the development of intermediary business,to promote business structure upgrade;adhere to the fine management,intensive management to reduce costs;based on differentiated business,strengthen the strategic transformation of positioning;improve the risk management system,enhance the comprehensive pricing capacity;Measures to Improve the Professional Quality of Employees.