Research On Profit Model Of Commercial Banks In China Under Interest Rate Liberalization

In October 2015,the People's Bank of China announced that the deposit interest rates for commercial banks and rural cooperative financial institutions will no longer be set aside for a floating limit.This has taken a key step in the reform of interest rate liberalization,and the scope of interest rate liberalization has continued to increase the scope of profitability of commercial banks.According to statistics from the Banking Association of China in the third quarter of 2017,the latest average net interest margin of China's commercial banks is 2.2%.This index has been declining since 2008 and has become more apparent in recent years.Another index that reflects the impact of the interest rate liberalization is the ratio of net interest income to operating income,and various types of commercial banks have noticeably decreased.However,on the other hand,the net interest income accounted for about 75% of the total operating income,still dominating.The market environment with narrowing spreads and increased competition has forced commercial banks to continue to optimize profit models that are currently dominated by interest rate spreads.In this paper,on the basis of domestic and foreign research,first of all,in view of the current general theory of marketization of interest rate and its impact on commercial bank profit model has carried on the theoretical research,analyzes the present situation of our country commercial bank profit model and the existence question,and aimed at developed countries such as the United States,Germany and Japan,summarizes the experience,hope for the optimization of our country commercial bank profit model for reference.Again through the collection about the financial statements of 16 listed Banks from 2008 to the third quarter of 2017,the China banking regulatory commission annual report and other data information,first of all,the empirical analysis of net interest income and the intermediate business income tells us different degree to net profit,and we get to know net income of commercial Banks intermediary business profit influence degree than net interest margin revenue,On this basis,subdividing the intermediate business income with fee and commission income,changes in fair value gains and losses,such as the income,investment income and other income,exchange ratio as a research perspective,Growth rate of the scale of assets,non-performing assets ratio and cost income ratio,net interest margin,macro economic growth indicators as the control variables on the sample data and the small and medium-sized Banks sample data regression analysis respectively the empirical conclusion say fee and commission income proportion and other income have significant positive effects on commercial bank's return on assets,non-performing assets ratio has significantly negative effect on commercial bank's return on assets,different types of commercial Banks factors significantly different conclusions.Finally after summarizes the theoretical and empirical analysis advise commercial Banks attach importance to the change of policy,compliance,maintain stable interest income,increasing financial products and improve innovation and service level,promote the development of intermediary business diversification,improve the bank's pricing power,cost control reasonably,provide differentiated financial services.