The reform of interest rate liberalization has brought great changes to the performance of commercial banks through various channels. In the meantime, the commercial banks are developing towards diversification in order to adjust themselves to the reform. In order to explore the impact of interest rate liberation and the changes in the income structure of commercial banks on their performance, unbalanced panel data of 68 commercial banks in China from the year 2006 to 2015 have been collected to establish a dynamic panel data model for the empirical test. The research shows that interest rate liberation has a remarkably negative impact on commercial banks' performance, and that on the urban commercial banks is the greatest. Nevertheless, the adjustment of the income structure of the commercial banks has little influence on their performance. Risk control and management level are the two significant influences on the performance of commercial banks. Therefore, it's suggested that the commercial banks should promote financial innovation, follow their own differentiated development path, and actively expand noninterest income besides commissions and fees, and rely on the Internet and large data so as to improve their performance.