Empirical Analysis on Bank's Net Interest Margin under the Background of Interest Rate Liberation: Taking the Banking Sector in Weihai for Example
- DOI
- 10.2991/icemet-16.2016.133How to use a DOI?
- Keywords
- Interest rate liberalization;Net interest margin;Impact of policy;Banks in Weihai
- Abstract
The market-oriented reform of interest rate in China will shorten the official basis spreads, so that it will affect the profitability of the banks. Based on the net interest spread as a measure of profitability, this paper put the four class bank in order, following by the large national funding bank, rural cooperation financial institution, the small and medium national funding bank, and village bank. The estimation of policy dummy variables shows that, under the macro-economic background with low inflation and stable growth, the continuous introduction of policies has a minor negative impact on the profitability of banks. To lighten this kind of impact, the interest policies should be introduced under low inflation and high growth, and taken into steps with more caution. For the banks, the impact can be lightened by optimizing customer structure, enhancing bargaining ability and improving the proportion of intermediate business income to show their own advantages.
- Copyright
- © 2016, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Lei Tang PY - 2016/05 DA - 2016/05 TI - Empirical Analysis on Bank's Net Interest Margin under the Background of Interest Rate Liberation: Taking the Banking Sector in Weihai for Example BT - Proceedings of the 2016 International Conference on Economy, Management and Education Technology PB - Atlantis Press SP - 651 EP - 655 SN - 2352-5398 UR - https://doi.org/10.2991/icemet-16.2016.133 DO - 10.2991/icemet-16.2016.133 ID - Tang2016/05 ER -