The impact of interest rate marketization on the profit model and risks of commercial banks

In the process of interest rate marketization, competition among banks will become more intense. Commercial banks with poor operating performance, low risk management capability and insufficient core competitiveness face the risk of being eliminated. Therefore, it is important to study and analyze the differences in operating performance and business risks between large and small banks under interest rate marketization for the sustainable development of Chinese finance. Due to the much higher mismatch between asset and liability structures, small banks face greater operating pressures than large banks. Finally, the article focuses on the impact of interest rate marketization on the operational risk management of small and medium-sized banks. The empirical results show that real interest rate spread, asset growth rate, and net interest income as a percentage of operating income are positively related to operational risk, while bank size and return on assets are negatively related to operational risk. Finally, the article focuses on the impact of interest rate marketization on the operational risk management of small and medium-sized banks. The empirical results show that real spread, asset growth rate, and net interest income as a proportion of operating income are positively related to operational risk, while bank size and return on assets are negatively related to operational risk.