A Digital Analysis Approach to the Performance Enhancement of Chinese Listed Commercial Banks by Interest Rate Marketization and Diversification

The accelerating process of interest rate marketization and the continuous deepening of financial reforms have greatly challenged the traditional profit model of commercial banks, which relies heavily on deposit and loan spreads. On the basis of analyzing the mechanism of interest rate marketization and diversification on the performance of Chinese listed commercial banks, this paper explores the extent of the impact of interest rate marketization and diversification on the performance of Chinese listed commercial banks by combining the multiple linear regression model with the panel data of 36 listed commercial banks in China. When interest rate marketization increases by 1 percentage point, the performance of listed commercial banks decreases by 0.176 percentage points. Diversification has a significant inhibitory effect on interest rate marketization at the 1% level, i.e., the higher the level of interest rate marketization, the higher the likelihood of commercial banks choosing to diversify their operations, which also improves commercial bank performance at the 1% level. Therefore, Chinese listed commercial banks need to enhance their performance through business innovation, increasing product variety, expanding business scope and other diversified operation methods in the context of interest rate marketization development.