In August 2019, in order to break the barrier of the "dual interest rate system" for the transmission of market interest rates to the real economy, the People's Bank of China launched the Loan Prime Rate 2.0 version, known as the LPR reform, to promote the marketization of interest rates, smooth the transmission of interest rates, and transmit the loose effects of monetary policy smoothly to the loan side. This has completely changed the determination method of commercial bank loan interest rates, bringing new opportunities and challenges to the operation and management of China's commercial banks. As a listed joint-stock commercial bank that takes the lead in achieving cross-regional development in the urban commercial banking system, it is particularly important to study the impact of LPR on Shanghai Bank, and it can also provide opinions for commercial banks to deal with the hidden risks under the LPR reform. Through theoretical and empirical research analysis, it is found that although the loan scale of Shanghai Bank is expanding year by year, the negative impact of subsequent LPR reform may become increasingly significant. The net interest margin of Shanghai Bank may show a trend of first decreasing and then increasing, and the bank's profitability will experience a decline stage, which is not conducive to the sustainable development of Shanghai Bank. In order to enable Shanghai Bank to calmly respond to risks and seek new development opportunities in the LPR reform, this article proposes the following suggestions: internally, it is recommended that Shanghai Bank accelerate its business transformation, optimize its debt structure, improve its pricing mechanism, and transform its internal management model; externally, it is recommended that Shanghai Bank optimize customer management and strengthen risk prevention.

Xi Dai. Research on the Impact of LPR Reform on Shanghai Bank's Asset Business. Academic Journal of Business & Management (2024) Vol. 6, Issue 2: 192-200. https://doi.org/10.25236/AJBM.2024.060228.

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