Research On The Impact Of Interest Rate Marketization On Commercial Banks' Operational Performance

In modern financial system,interest rate,exchange rate and other economic variables can be used as indicators to measure the economy of a country or region.Among many variables,interest rate is the most important,it is because that: on the one hand,it is an important manifestation of the price of funds;on the other hand,it is the product of market-oriented reform.Under the market-oriented conditions,the fluctuation of interest rate will affect the financial market and even the whole economic development.Interest rate is an important variable to measure performance in modern economy,so one of the important means for the state to carry out macro-control is to adjust interest rate in order to promote the steady development of market economy and maintain the stability of the price.Because of the important influence of interest rate on the financial system,in the process of studying the overall performance of listed banks and various commercial banks in China,interest rate is an important content that must be studied.The study of interest rate is not only conducive to reducing the frictional cost of capital financing,but also can improve the utilization rate of resources and the efficiency of economic operation.Especially for commercial banks,the study of interest rates enables banks to learn from the same level commercial banks of their development experience,extract the essence,remove the dross,adapt to the business environment of the banking industry more quickly,and better cope with the frequent fluctuations of interest rates under the marketization.In order to study the impact of interest rate fluctuation on the operating performance of Listed Banks under the interest rate marketization better and more comprehensively,this paper uses qualitative and quantitative analysis combined with comparative and inductive analysis methods to conduct in-depth and detailed analysis of the relevant panel data of 16 listed commercial banks in China from 2008 to 2018.This paper is mainly divided into three parts.The first part is quantitative analysis,aiming at the sample banks,we study the overall performance of banks under the conditions of interest rate marketization and interest rate fluctuation.The second part is comparative analysis.According to the data of listed commercial banks,we find that banks can be divided into state-owned banks,joint-stock banks and city commercial banks,and compare them separately.More analysis.The third part is the countermeasures and suggestions.Different types of banks face different situations when facing interest ratemarketization.According to the results of the analysis,different types of banks put forward different suggestions to improve their performance.The results show that: 1.The most important factor affecting the return on assets of sample banks is the marketization coefficient of interest rate,which shows a positive correlation.The coefficient has a greater impact on the commercial banks in cities than on the state-owned banks and joint-stock banks;2.For the sample banks as a whole and the non-performing loan rate,when R increases,they will decrease and they have a negative correlation with each other.For joint-stock banks,the impact is not great.3.Nominal spreads have a certain impact on the return on assets of joint-stock banks and city commercial banks,but have little impact on the major state-owned banks.This paper draws the conclusion that the marketization coefficient of interest rate(R)and performance index(R0A)have obvious positive correlation,that is,the smaller the marketization coefficient of interest rate(R),the smaller the total return on assets(R0A)of banks.The marketization of interest rate in China has a great impact on the performance of commercial banks.In the short run,the marketization of interest rate in China will bring some negative effects on the performance of commercial banks.But in the long run,commercial banks in China will optimize their own income model and the allocation of corresponding assets.At present,China's interest rate market reform is under the situation of exploration and development.For our country,it is very important to explore the relationship between interest rate marketization and business performance of various industries,because the phenomenon of economic instability still exists,and our country is facing constant changes in the interest rate market,while the complex economic environment is always changing.Therefore,in the process of interest rate marketization reform,according to the principle of maximizing operating performance,different suggestions are put forward for different types of banks: for state-owned banks,it is necessary to optimize customer structure,innovate and develop various business channels,optimize business structure and create a business atmosphere conducive to innovation and business development;for joint-stock banks,it is necessary to promote regional characteristic management and reduce various aspects.For city commercial banks,it is necessary to accurately understand the service target groups,strive to create business characteristics,improve the efficiency of subdividing areas,and optimize risk control.The innovation of this paper lies in: paying attention to enterprise risk and non-performing loan ratio,although in the fierce competitive environment,commercialbanks can increase the return on assets by adjusting prices,but it will also bring new risks.The focus of non-performing loan rate research can take both efficiency and risk control into account,and can also reflect the management strategies of different banks.We also classify the samples of empirical research more carefully: state-owned banks,joint-stock banks,and considering geographical factors,different from the traditional research,we add the new classification of urban commercial banks,which can make the empirical results and policy recommendations more targeted.