Research on the Impact of Interest Rate Liberalization on the Profitability of China’s Listed Small and Medium Sized Commercial Banks

Ren Ya

doi:doi:10.11648/j.si.20160404.17

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Research on the Impact of Interest Rate Liberalization on the Profitability of China’s Listed Small and Medium Sized Commercial Banks

Ren Ya

Published in Science Innovation (Volume 4, Issue 4)

Received: 13 October 2016 Published: 13 October 2016

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Abstract

In 1996, The People's Bank of China (PBOC) established a national treasury bonds market and inter-bank lending market, marking that the official start of China’s interest rateliberalization. After 20 years of orderly developing, reform has entered the key stage. In October 23, 2015, the PBOC announced that it would no longer set the floating ceiling of deposit rate to commercial banks and rural cooperative financial institutions. Release the control of interest rate means that the entire banking industry will fall into a more intense competition, and the traditional mode of operation will suffer from more threats and challenges. Especially in China's small and mediumsized commercial banks, compared to the large state-owned banks, the capital accumulation is relatively weak, more limited business development, limited customer resources, lack of brand effect, so it is bound to face more difficulties.In empirical research, the article selects 11 listed small and mediumsized banks as the research samples, using panel data model to analyze how the interest rate liberalization impact the profitability of these selected banks. Finally, combining with analysis results, the article proposes some measures to increasing the profit space of small and mediumsized commercial banks under the process of interest rate liberalization.

Published in	Science Innovation (Volume 4, Issue 4)
DOI	10.11648/j.si.20160404.17
Page(s)	211-215
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2016. Published by Science Publishing Group

Keywords

Small and Medium Sized Commercial Banks, Interest Rate Liberalization, Profitability, Panel Data

References

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[3]	左峥，唐兴国，刘艺哲.存款利率市场化是否会提高银行风险——基于存贷利差缩窄的一个视角[J].财经科学，2014，（2）：20—29。
[4]	谭中明，时红. 利率市场化对商业银行盈利能力的影响——以四大国有银行为例[J].银行管理，2015，（3）：17-20。
[5]	王玉祥. 利率市场化条件下商业银行盈利模式研究[J].商场现代化，2016，（3）：111-112。
[6]	李亮亮，刘淼.利率市场化对商业银行盈利能力影响因素的作用[J].金田，2013，（5）：345。
[7]	中国人民银行荆门市中心支行课题组.利率市场化改革对商业银行盈利能力的影响及对策——基于荆门市各金融机构的实证分析[J].金融纵横，2015，（12）：44-47。
[8]	陈希娟.利率市场化下我国商业银行利率风险管理[J].金融市场，2014，（47）：32-33。
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[10]	王瑞，王家华.利率市场化对国有商业银行盈利模式影响分析[J].海南金融，2015，（6）：66-72。

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APA Style

Ren Ya. (2016). Research on the Impact of Interest Rate Liberalization on the Profitability of China’s Listed Small and Medium Sized Commercial Banks. Science Innovation, 4(4), 211-215. https://doi.org/10.11648/j.si.20160404.17

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ACS Style

Ren Ya. Research on the Impact of Interest Rate Liberalization on the Profitability of China’s Listed Small and Medium Sized Commercial Banks. Sci. Innov. 2016, 4(4), 211-215. doi: 10.11648/j.si.20160404.17

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AMA Style

Ren Ya. Research on the Impact of Interest Rate Liberalization on the Profitability of China’s Listed Small and Medium Sized Commercial Banks. Sci Innov. 2016;4(4):211-215. doi: 10.11648/j.si.20160404.17

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@article{10.11648/j.si.20160404.17,
  author = {Ren Ya},
  title = {Research on the Impact of Interest Rate Liberalization on the Profitability of China’s Listed Small and Medium Sized Commercial Banks},
  journal = {Science Innovation},
  volume = {4},
  number = {4},
  pages = {211-215},
  doi = {10.11648/j.si.20160404.17},
  url = {https://doi.org/10.11648/j.si.20160404.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.si.20160404.17},
  abstract = {In 1996, The People's Bank of China (PBOC) established a national treasury bonds market and inter-bank lending market, marking that the official start of China’s interest rateliberalization. After 20 years of orderly developing, reform has entered the key stage. In October 23, 2015, the PBOC announced that it would no longer set the floating ceiling of deposit rate to commercial banks and rural cooperative financial institutions. Release the control of interest rate means that the entire banking industry will fall into a more intense competition, and the traditional mode of operation will suffer from more threats and challenges. Especially in China's small and mediumsized commercial banks, compared to the large state-owned banks, the capital accumulation is relatively weak, more limited business development, limited customer resources, lack of brand effect, so it is bound to face more difficulties.In empirical research, the article selects 11 listed small and mediumsized banks as the research samples, using panel data model to analyze how the interest rate liberalization impact the profitability of these selected banks. Finally, combining with analysis results, the article proposes some measures to increasing the profit space of small and mediumsized commercial banks under the process of interest rate liberalization.},
 year = {2016}
}

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TY  - JOUR
T1  - Research on the Impact of Interest Rate Liberalization on the Profitability of China’s Listed Small and Medium Sized Commercial Banks
AU  - Ren Ya
Y1  - 2016/10/13
PY  - 2016
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DO  - 10.11648/j.si.20160404.17
T2  - Science Innovation
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JO  - Science Innovation
SP  - 211
EP  - 215
PB  - Science Publishing Group
SN  - 2328-787X
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AB  - In 1996, The People's Bank of China (PBOC) established a national treasury bonds market and inter-bank lending market, marking that the official start of China’s interest rateliberalization. After 20 years of orderly developing, reform has entered the key stage. In October 23, 2015, the PBOC announced that it would no longer set the floating ceiling of deposit rate to commercial banks and rural cooperative financial institutions. Release the control of interest rate means that the entire banking industry will fall into a more intense competition, and the traditional mode of operation will suffer from more threats and challenges. Especially in China's small and mediumsized commercial banks, compared to the large state-owned banks, the capital accumulation is relatively weak, more limited business development, limited customer resources, lack of brand effect, so it is bound to face more difficulties.In empirical research, the article selects 11 listed small and mediumsized banks as the research samples, using panel data model to analyze how the interest rate liberalization impact the profitability of these selected banks. Finally, combining with analysis results, the article proposes some measures to increasing the profit space of small and mediumsized commercial banks under the process of interest rate liberalization.
VL  - 4
IS  - 4
ER  -

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Author Information

Ren Ya

School of Economics, Shanghai University, Shanghai, China

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Plain Text BibTeX RIS

APA Style

Ren Ya. (2016). Research on the Impact of Interest Rate Liberalization on the Profitability of China’s Listed Small and Medium Sized Commercial Banks. Science Innovation, 4(4), 211-215. https://doi.org/10.11648/j.si.20160404.17

Copy | Download

ACS Style

Ren Ya. Research on the Impact of Interest Rate Liberalization on the Profitability of China’s Listed Small and Medium Sized Commercial Banks. Sci. Innov. 2016, 4(4), 211-215. doi: 10.11648/j.si.20160404.17

Copy | Download

AMA Style

Ren Ya. Research on the Impact of Interest Rate Liberalization on the Profitability of China’s Listed Small and Medium Sized Commercial Banks. Sci Innov. 2016;4(4):211-215. doi: 10.11648/j.si.20160404.17

Copy | Download

@article{10.11648/j.si.20160404.17,
  author = {Ren Ya},
  title = {Research on the Impact of Interest Rate Liberalization on the Profitability of China’s Listed Small and Medium Sized Commercial Banks},
  journal = {Science Innovation},
  volume = {4},
  number = {4},
  pages = {211-215},
  doi = {10.11648/j.si.20160404.17},
  url = {https://doi.org/10.11648/j.si.20160404.17},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.si.20160404.17},
  abstract = {In 1996, The People's Bank of China (PBOC) established a national treasury bonds market and inter-bank lending market, marking that the official start of China’s interest rateliberalization. After 20 years of orderly developing, reform has entered the key stage. In October 23, 2015, the PBOC announced that it would no longer set the floating ceiling of deposit rate to commercial banks and rural cooperative financial institutions. Release the control of interest rate means that the entire banking industry will fall into a more intense competition, and the traditional mode of operation will suffer from more threats and challenges. Especially in China's small and mediumsized commercial banks, compared to the large state-owned banks, the capital accumulation is relatively weak, more limited business development, limited customer resources, lack of brand effect, so it is bound to face more difficulties.In empirical research, the article selects 11 listed small and mediumsized banks as the research samples, using panel data model to analyze how the interest rate liberalization impact the profitability of these selected banks. Finally, combining with analysis results, the article proposes some measures to increasing the profit space of small and mediumsized commercial banks under the process of interest rate liberalization.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - Research on the Impact of Interest Rate Liberalization on the Profitability of China’s Listed Small and Medium Sized Commercial Banks
AU  - Ren Ya
Y1  - 2016/10/13
PY  - 2016
N1  - https://doi.org/10.11648/j.si.20160404.17
DO  - 10.11648/j.si.20160404.17
T2  - Science Innovation
JF  - Science Innovation
JO  - Science Innovation
SP  - 211
EP  - 215
PB  - Science Publishing Group
SN  - 2328-787X
UR  - https://doi.org/10.11648/j.si.20160404.17
AB  - In 1996, The People's Bank of China (PBOC) established a national treasury bonds market and inter-bank lending market, marking that the official start of China’s interest rateliberalization. After 20 years of orderly developing, reform has entered the key stage. In October 23, 2015, the PBOC announced that it would no longer set the floating ceiling of deposit rate to commercial banks and rural cooperative financial institutions. Release the control of interest rate means that the entire banking industry will fall into a more intense competition, and the traditional mode of operation will suffer from more threats and challenges. Especially in China's small and mediumsized commercial banks, compared to the large state-owned banks, the capital accumulation is relatively weak, more limited business development, limited customer resources, lack of brand effect, so it is bound to face more difficulties.In empirical research, the article selects 11 listed small and mediumsized banks as the research samples, using panel data model to analyze how the interest rate liberalization impact the profitability of these selected banks. Finally, combining with analysis results, the article proposes some measures to increasing the profit space of small and mediumsized commercial banks under the process of interest rate liberalization.
VL  - 4
IS  - 4
ER  -

Copy | Download