The Empirical Study on the Influence of Interest Rate Marketization on the Profitability of Commercial Banks -From the Perspective of Interest Rate Changes

The interest rate reform of China has a huge impact on commercial banks whose main traditional profit model still relies on spread income. These commercial banks have increasingly recognized the importance of optimizing profit structure. This paper summarizes the impact of interest rate market-oriented reform on commercial bank profitability and uses the annual data from 2010 to 2015 of 16 listed banks to explain their relationship by setting up a panel regression model in which M-2, GDP, bank lending rates and other variables are included. Then this paper analyzes the profitability changes of joint-stock commercial banks, city commercial banks and rural commercial banks after the the interest rate reform.