Abstract：This paper analyzes the impacts of price-based and quantity-based monetary policies on the profitability of commercial banks. The empirical results show that the direction and extent of the impacts of price-based monetary policy on the profitability are different from those of the quantity-based monetary policy, and the joint implementation of different type of monetary policy has a superimposed effect; whether it is based on income acquisition or hedging, the interest rate derivatives indeed increase the non-interest income of banks, while the effect of monetary policy is not very significant. Therefore, the implemented monetary policies should be classified into different types and the direction of policy effect should be given attention; the price should accurately priced and the efficiency should be improved while developing and innovating interest rate derivatives.

Keyword：price-based monetary policy; quantity-based monetary policy; profitability of bank; interest rate derivative;