Abstract：
There are different views about how the interest rate marketization influences the bank performance. Picking 2012 as the time for observation when the upper limit of deposit rate was opened for the first time, this paper builds a KPSM-DID model and studies the influences of loosening deposit rate regulation on bank performance. The result shows that loosening deposit rate regulation has a significant negative effect on profitability of commercial banks in China.Small-scale banks are more sensitive to the interest rate marketization policy while large-scale banks have relatively robust profitability.Commercial banks should actively adjust the credit structure to maintain a reasonable NIM,speed up the implementation of business transformation to create new profit growth point and build a reasonable interest rate pricing system as soon as possible. Meanwhile, small-scale banks should play their own advantages and implement differentiated management strategy as early as possible.
2017 
