The Research on the Relationship Between China's Commercial Bank's Joint-stock Reform and Interest Spread

Abstract

Since the 1990s, with the gradual deepening of economic globalization, the competition in the banking sector has been increasingly fierce. In the face of the deep-seated problems of the domestic banking sector, and the promotion of extetal facors, China's banking industry has conducted joint-stock reform, including financial restructuring, the introduction of foreign strategic investors and listing. And through this, it will promote the China's commercial banks to operate market-oriented and will be good to the building of a modern financial system. Interest spread is the most important source of income in China's commercial banks. It accounts for up to 80% or even more. Differently, non-interest business has developed rapidly in foreign commercial banks, such as Europe and the United States. Therefore, their income is by no means limited to the basic business, that is deposit and loan business. As a key step in the establishment of a modern banking system, the commercial banks’ joint-stock reform can have some influence on the interest spread. Based on the finality of joint-stock reform and the importance of interest spread, the article is aimed at analyzing the impact of joint-stock reform on interest spread.