Research On The Impact Of Interest Rate Marketization On The Profitability Of Chinese Commercial Banks

As the price of funds,interest rates play a role in regulating resource allocation in financial markets.Since the 1990s,the reform of the socialist market economy system has gradually started in China,with the aim of allowing the market to play a fundamental role in the allocation of resources.The marketization of interest rates is an important aspect of China's role in the independent allocation of resources in the financial market.Starting from the establishment of the interbank lending market in 1996,the loan market interest rate quotation mechanism will be reformed in 2019.The ultimate goal of interest rate marketization is getting closer.However,the return of pricing power to financial institutions will certainly intensify competition among banks.According to the financial reports of listed banks since the interest rate liberalization reform,the operating situation of the banking industry is not optimistic,and the return on total assets has generally declined.Major banks have adopted transformation strategies in order to maintain profitability in the fierce market competition.Therefore,exploring the impact of interest rate marketization on the profitability of commercial banks,and making good use of the "double-edged sword" of interest rate marketization will help to recognize the current status of bank operations,find new profit models,and improve their own ability to resist risks in order to adapt to In the future,the financial industry will intensify its competition.This article focuses on the impact of interest rate marketization on the profitability of China's commercial banks.First,it reviews the existing research literature.Based on the relevant theories of interest rate marketization and the impact factors of commercial bank profitability,it analyzes the internal and external factors.The impact mechanism of interest rate marketization on the profitability of commercial banks;secondly,it clarifies the course of interest rate marketization reform in China,and analyzes the development trends of China's listed commercial banks in the past ten years,using charts and graphs to analyze the changes in various indicators of the bank,and judges the interest rate market from a qualitative perspective.Impact of commercialization on the profitability of commercial banks;then,using a fixed-effect measurement model to explore the impact of interest rate marketization on commercial banks,based on regression results and robustness analysis results.it is found that interest rate marketization has a significant impact on the profitability of commercial banks,and bank income The structural changes did not significantly improve profitability,etc.;then selected China's M Bank for case analysis to analyze its profit model and find the reasons for the decline in profit;finally,based on the research results,the following suggestions were made:(1)To improve the internal pricing system and open the bank's internal The rate transmission channel is the basis for the ultimate realization of the interest rate marketization reform goal;(2)Promote the refined development of the bank's business strategy,continue to optimize the income structure,improve the profitability of the intermediate business,and effectively improve the bank's profitability;(3)actively respond The risk of interest rate fluctuations and the improvement of risk management capabilities can stabilize their own development in an increasingly severe competitive environment.