A Comparative Analysis Of Profit Modes Of Commercial Banks

The impact of global financial crisis in 2008 on Chinese commercial banks was not disastrous, however, the strength of them are greatly enhanced, become a beautiful scenery in crisis. But asset ranking dose not mean that Chinese commercial banks have surpassed the advanced western commercial banks, the reality that Chinese commercial banks are big other than strong still exists:the interest based revenue model of Chinese commercial banks has been hard to continue. With the development of marketization of interest rate, the vigorous development of capital market, increasingly strict capital constraints and improving diversification of financial demand, it is inevitable for Chinese commercial banks to change and improve their earning patterns.The dissertation firstly analyzes the changing process of earning pattern of Chinese commercial banks, points out the main problems of the existing earning model, discusses the necessity of transition of earning pattern. As the aim of transition of commercial banks is to gain more profits, improve their core competitiveness, the inspection of transition should be implemented on the strength of profitability, so build a factor analysis model to identify the main factors of profitability of commercial banks, and find the advantages and disadvantages of different kinds of bank through comparative analysis. Finally put forward the path of commercial bank profit model transition can be selected, namely establishment of capital intensive business development model, differential operation of different kinds of banks and cultivating their own core competitiveness. Using factor analysis, I found that in current profit model of China, debt structure and scale of assets of commercial banks affects profitability greatest. State owned commercial banks benefit from the scale effect, large business outlets reduced the cost of deposits, so the overall profitability is better than that of joint-stock commercial banks and city commercial banks. Non interest income of joint-stock commercial banks is generally higher than that of state-owned commercial banks, but the overall is still at a low level, the gap is not enough to be reflected in profitability. Compared with state-owned banks, the joint-stock banks and city commercial banks in loans are more cautious, the loan quality and cost control ability are better than the stated owned banks. Finally, according to the result of empirical analysis, I put forward the path of profit model transition of commercial bank can be selected,i.e., various commercial banks carry out accurate self localization, differentiation development strategy. The state-owned commercial banks should use the dot size, customer structure, social reputation and other aspects of the advantages develop the retail business. The joint-stock commercial banks should make clear its market orientation and customer orientation, focus on the advantages of business resources development capital especially of the public business, take the path of professional development. City commercial banks should focus on the development of financial services to small and medium enterprises. Creating a suitable supervision mechanism of universal management, promoting the transformation of commercial bank profit model from the macro environment and the bank’s own two aspects.