scholarly journals Research on the Influence of Interest Rate Liberalization on Commercial Banks’ Profitability in China

2021 ◽  
Vol 4 (5) ◽  
pp. 78-83
Author(s):  
Lina Wang ◽  
Hengyuan Zhao ◽  
Ruoxi Li
Keyword(s):  
Panel Data ◽  
Interest Rate ◽  
Empirical Analysis ◽  
Commercial Banks ◽  
Inflection Point ◽  
Early Stage ◽  
Interest Rate Liberalization ◽  
Large State ◽  
The Impact

In order to explore the influence of interest rate liberalization on profitability, an empirical analysis is carried out with the panel data of commercial banks in China from 2009 to 2019. Then, the heterogeneity of the impact is studied among different banks. The results show that, first, interest rate liberalization and commercial banks’ profitability have an inverted U-shaped relationship, whereby interest rate liberalization would increase the profitability of banks in the early stage but would reduce the profitability after reaching a peak inflection point at the later stage. Secondly, the impact varies among different banks, being more significant in urban commercial banks and large state-owned banks.

scholarly journals The Influence of Interest Rate Liberalization on Commercial Banks and Its Countermeasures

2020 ◽  
Vol 9 (1) ◽  
pp. 34
Author(s):  
Mengting Jiang
Keyword(s):  
Economic Development ◽  
Interest Rate ◽  
Commercial Banks ◽  
Economic Situation ◽  
Financial Reform ◽  
Interest Rate Liberalization ◽  
Loan Spread ◽  
Current Economic Situation ◽  
The Impact

<p>The liberalization of interest rate is an important part of the financial reform in China under the current economic situation, and it is the inevitable result of the economic development of China to a certain extent. With the deepening of interest rate liberalization reform in China, commercial banks have been affected to a certain extent; the deposit and loan spread, which accounts for the main income of commercial banks, has been narrowed, and the profit space of commercial banks has been further reduced. Therefore, this paper discusses the impact of interest rate liberalization on commercial banks and the choices that commercial banks should make under this situation.</p>

scholarly journals Interest Rate Liberalization and Commercial Banks Profitability: Evidence from China

2020 ◽  
Vol 12 (5) ◽  
pp. 90
Author(s):  
Lai Ying
Keyword(s):  
Interest Rate ◽  
Empirical Study ◽  
Interest Rates ◽  
Commercial Banks ◽  
Well Being ◽  
Key Factors ◽  
Interest Rate Liberalization ◽  
Production Growth ◽  
The Future ◽  
The Impact

Enhanced profitability is an important guarantee to improve the well-being of people and better exert the functions of commercial banks in promoting economic, social and production growth on the premise of the existence and development of commercial banks. Interest rate liberalization is one of the key factors which can affect the profitability of commercial banks. An empirical study is thus carried out on 16 Commercial banks (from 2007 to 2018) to analyze the impact of interest rate liberalization on the profitability of commercial banks. We draw main conclusions from this study: (1) the progress of interest rate liberalization has improved the profitability of banks. (2) This kind of impact is inverted U-shaped, that is, with the advancement of interest rate liberalization, the impact will be reversed in the future. (3) For banks of different sizes, the impact is different. Specifically, small and medium-sized banks are more sensitive to the liberalization of interest rates, while for larger banks, the impact is not strong.

scholarly journals Research on the Impact of Interest Rate Liberalization on Profitability of the Security Industry

2020 ◽  
Vol 12 (5) ◽  
pp. 114
Author(s):  
Lai Ying
Keyword(s):  
Interest Rate ◽  
Empirical Analysis ◽  
Financial Data ◽  
Adverse Impact ◽  
Interest Rate Liberalization ◽  
Security Industry ◽  
Significant Difference ◽  
The Interest Rate ◽  
The Impact ◽  
The Empirical Analysis

As the process of the interest rate liberalization deepens continuously and the level of the interest rate liberalization improves constantly, every aspect of the financial system is affected. The thesis mainly analyzes how the profitability of the security industry is affected, how this kind of impact is transmitted and what kind of self-targeted revolution and financial innovation should be made by the security industry to tackle the adverse impact. After the empirical analysis and the robustness test of the financial data in 18 listed securities companies in Wind Database from 2007 to 2018, the author concludes that: (1) The impact of the interest rate liberalization on the profitability indicator ROA of securities companies presents a positive U shape. (2) There is no significant difference in the impact of interest rate liberalization on the profitability indicator of different securities companies.

scholarly journals THE IMPACT OF INTEREST RATE LIBERALIZATION ON THE OPERATING PERFORMANCE OF THE TOP TEN COMMERCIAL BANKS IN CHINA

2021 ◽  
Author(s):  
HONG-YU ZHANG ◽  
XIONG-HUI ZHANG
Keyword(s):  
Interest Rate ◽  
Financial Institutions ◽  
Commercial Banks ◽  
Operating Performance ◽  
Research Direction ◽  
Interest Rate Liberalization ◽  
Interest Rate Marketization ◽  
Marketization Reform ◽  
The Impact ◽  
Index Sorting

How to survive and develop better in the process of interest rate marketization reform has always been the focus and research direction of financial institutions. In this paper, through the evaluation and calculation of interest rate marketization into an index, sorting out the relevant indicators and data in 2009-2018, using regression model to study the impact of interest rate marketization on the performance of China's top commercial banks.

scholarly journals The Impact of Interest Rate Liberalization on the Interest Rate Spread of Commercial Banks in China

2020 ◽  
Vol 5 (1) ◽  
pp. 10
Author(s):  
Wenyi Bai
Keyword(s):  
Economic Development ◽  
Interest Rate ◽  
Commercial Banks ◽  
Banking Industry ◽  
Rapid Development ◽  
Negative Effects ◽  
Interest Rate Liberalization ◽  
Interest Rate Spread ◽  
The Interest Rate ◽  
The Impact

<p>In recent years, with the continuous improvement of China's economic development level, the banking industry has developed by leaps and bounds. Its profitability and comprehensive competitiveness has been greatly improved. banks are the symbol of financial economy and the embodiment of a country's economic strength. The steady development of the banking industry will have directly impact on social stability and the level of economic development. The emergence of interest rate liberalization has reduced the state's decision on interest rate, which brings more convenience and great development opportunities to banks, promoting the rapid development of the banking industry. However, it is undeniable that interest rate liberalization will also bring some negative effects to China's commercial banks. Therefore, in order to provide reference and reference for the needs of relevant parties, we must fully understand and grasp the meaning of interest rate liberalization, find out the influencing factors, and on this basis, put forward targeted suggestions.</p>

scholarly journals Challenges and measures faced by commercial banks under interest rate liberalization

2021 ◽  
Vol 14 ◽  
pp. 63-68
Author(s):  
Jiuding Li ◽  
Youchuan Cui
Keyword(s):  
Interest Rate ◽  
Commercial Banks ◽  
Debt Management ◽  
Rate System ◽  
Interest Rate Liberalization ◽  
Interest Rate Marketization ◽  
Management Concepts ◽  
New Business ◽  
Market Instability ◽  
And Control

the maturity of interest rate marketization marks the transformation of China's interest rate system from the traditional interest rate model to the new one.As an important participant in the reform of interest rate marketization, commercial banks are faced with many challenges, such as the decline of profit level, the substantial increase of operational risk, the increase of financial market instability, and the increase of liquidity risk.They should actively explore new business and management concepts, adopt measures to improve the prices of financial products and derivatives, introduce risk management and control mechanism, develop bank's intermediate business, and promote the development of bank's intermediate business In order to ensure the healthy and stable development of commercial banks, we should take positive measures such as strengthening the ability of debt management, reasonably dealing with the challenge of interest rate marketization.

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