Research On The Transformation Of Zs Bank's Profit Model Based On The Background Of Interest Rate Marketization

After entering the 21 st century,the Chinese economy has entered a new normal.The market economic system has been initially established,the market plays a decisive role in resource allocation,the macro-control system is becoming more and more perfect,and the interest rate marketization reform in the financial sector is coming to an end.This series of reforms has had a great impact on the financial industry.In particular,interest rate liberalization has inevitably challenged commercial banks with traditional “eating spreads”as a profit model,accelerating inter-bank competition.Compared with large state-owned banks,small and medium-sized commercial banks have small assets and rely more on spread income.Therefore,in the context of the comprehensive advancement of interest rate marketization,how to change the traditional profit model and ensure that it adapts to the changes of the new economic environment is of vital importance for sustainable and healthy development.This article takes China Merchants Bank as an example.Firstly,based on the introduction of relevant concepts and theoretical basis,using factor analysis method,comparative analysis method and ratio analysis method,according to the annual report of China Merchants Bank in 2009-2018,the paper analyzes the profitability of China Merchants Bank under interest rate marketization.The status quo and existing problems of the model.The specific status quo is as follows: the overall profit growth rate of China Merchants Bank has slowed down,the development of intermediary business has lagged behind,the traditional profit model has been heavily relied on,and the non-performing loan ratio has increased year by year.Combined with the operation status of China Merchants Bank in the past ten years,the reasons for the above problems are as follows: interest rate marketization spreadincome narrows,which makes the profitability of China Merchants Bank,which is dominated by the traditional profit model,decline,and the income growth rate slows down.Through the analysis of the development process,income,product composition and non-interest income efficiency of China Merchants Bank's intermediary business,it is found that the intermediate business innovation is insufficient.By examining asset quality indicators,it was found that the quality of loans in manufacturing,wholesale and retail industries was poor,leading to a rise in non-performing loan ratios and increasing the credit risk of banks.In response to the above problems and their causes,it is recommended that China Merchants Bank should adapt to changes in the external environment,improve its own profitability,accelerate innovation and differentiated intermediary business,increase the proportion of non-interest income,carry out profit model reform,and pay close attention to changes in non-performing asset indicators.Strengthen the internal control system,strengthen the economic cycle level and reduce credit concentration,thereby improving the overall profitability of the bank.