A Research On The Profit Model Change In China’s Commercial Banks

With the economic development in our country, commercial banks have dramatically developed too. However, the disadvantages of the existing commercial banks’ profit model in our country have appeared gradually in competition, following the increasing bringing-in of foreign banks. The commercial banks, the core of the financial system in China, have been made to speed up the transition of the forthcoming profit model in which interest margin is the key point during the daily management, after the entrance to WTO and the commitment to opening the capital. Transition to the banlance between interest margin of the internationally top-ranking commercial banks and intermediary services should be made so as to promote their competitiveness and get the upper hand in competition.This article will talk about the topic thoroughly by the level, with the research design from interrogating, analyzing to solving the problem. Firstly, a qualitative analysis of the commercial banks’ profit models in our country will be done in order to make a conclusion that interest margin still plays a dominant role at present in profit model of commercial banks in China. Secondly, it will talk about the reasons why the interest-margin-dorminating profit model should be changed as well as the possible barriers while changing. Thirdly, panel data will be used to prove the achievement of the profit model change in China’s commercial banks that have been got recent years. And the development of commercial banks in America and Germany will be taken as a reference when it comes to the change of the profit model in China’s commercial banks. Then the intermediary services, the critical factor in the change of the profit model in China’s commercial banks, will be discovered through models in the part of positive analysis.