Research on Empirical analysis of the influencing factors of commercial banks' profit model under the background of Interest Rate Liberalization

Abstract

This paper takes the influencing factors of commercial banks' profit model under the background of interest rate liberalization as the main research line.It analyzes the main influencing factors of the profit model of my country's commercial banks, and uses the data of 4 state-controlled commercial banks and 6 joint-stock commercial banks to empirically test the main influencing factors of my country's commercial banks' profit model under the background of interest rate liberalization.The research shows that the top six factors that affect the profitability of commercial banks are net interest margin, asset quality, cost-to-income ratio, risk tolerance, financial innovation, and loan-to-deposit ratio, while the scale of bank assets has the lowest contribution to profitability. In order to improve the profitability of commercial banks, it is necessary to strengthen financial innovation capabilities, prevent and control commercial bank risks, and improve the financial supervision system.