The Positive Research Of Interest Rate Liberalization In Chinese Rural Commercial Banks Operation Performance Affects

Since June 1,1996,the central bank has released the regulation of interbank lending rate,which has also opened the curtain of interest rate marketization in China.Over the years,interest rate liberalization has also undergone deeper reform.Now the central bank has cancelled the control of deposit and loan interest rates.The deposit and loan interest rates can fluctuate to a certain extent with the changes of financial markets.Rural commerce in China has undergone historic changes and is an important part of China's rural financial system.However,compared with the first-class joint-stock banks such as Bank of China,there are many problems,such as system,small capital scale,insufficient talent reserve and few types of financial products.Marketization of interest rate will inevitably affect their economic performance.In the course of the research,this paper analyses the relevant theories of interest rate marketization and Commercial Bank performance,and applies them to empirical analysis,and then makes a comprehensive and profound analysis of the impact of interest rate marketization on the operational performance of China's agricultural and commercial banks.Firstly,in the course of the research,this paper elaborates the background and significance of the research,and points out the current research situation of the impact of interest rate marketization on the performance of commercial banks at home and abroad.The scope of this study,research methods and research ideas are put forward,and the innovative points of this paper are summarized.Secondly,based on the theory of interest rate marketization and Commercial Bank performance,and considering the actual situation of rural commercial banks in China,this paper chooses the marketization coefficient of interest rate and nominal interest margin as explanatory variables,and takes assets,capital adequacy ratio,cost-income ratio,non-interest income ratio and G-interest income ratio as explanatory variables.The regression model of DP growth rate,net interest margin and deposit-loan ratio is established and verified.The regression results show that there is a significant positive correlation between the marketization coefficient of interest rate and the total asset return rate of sample agricultural and commercial banks.The marketization coefficient of interest rate has a negative correlation with the non-performing loan rate.In addition,nominal interest margin has a negative correlation with the asset return rate and non-performing loan rate of agricultural and commercial banks.The effect of the rate is not significant.Finally,combined with the problems encountered in the research process and the problems in the process of improving the operational performance of the Agricultural and Commercial Bank of China,the paper puts forward suggestions and prospects for the improvement of the pricing mechanism,the establishment of a scientific risk prevention mechanism for interest rate changes,and the adjustment of the business structure of the Agricultural and Commercial Bank of China.