Research On The Transition Of Chinese Commercial Banks Profit Model

As the mediation of the indirect financing in China’s financial markets, commercial banks play an important role. The profit model of the commercial banks is a way to gain profits, create value, and enhance competitiveness. However, with the outbreak of the2008financial crisis, the macro-financial environment is badly suffered. The new financial regulation Basel III becomes increasingly stringent. The interest rate achieves further development of the marketization. The stock market as well as the Trust and other new institutions and treasure products is developing so fast, which makes financial disintermediation problems getting worse. The current profit model of China’s commercial banks has to be changed.Papers first analyzes the current status and the facing problems of China’s commercial banks’profit model. Analyze the status from income and business perspectives. Contrast the four major index of four state-owned commercial banks, joint-stock banks and city commercial banks. The bank profit model is ultimately reflected in profitability, so finally build a model from factor analysis to identify the main factors which current affecting the profitability of commercial banks. Finally, China’s commercial banks profit model is proposed to transform through the value chain, based on "a goal, two types of objects, and five elements ". Particularly, the state-owned commercial banks, joint-stock banks and city commercial banks should have different strategic positioning, avoiding the same developing way. What is more, through asset-light operations and the improvement of the intermediary business; and the enhancing level of scientific pricing, the commercial bank will develop fast. The band should also be build,the staffs working skill should also be developed.