Study On Profitability Of Riskless Assets And Influencing Factors Of Listed Banks

Profitability is the basis for the survival and development of the commercial banks.Combing previous literature, indicators such as return on net assets, return on assets,netinterest rate of return are often used to measure profitability. But they can’t fully reflectthe characteristics of the bank’s risk. In this paper, we study the evaluation of risk assetsand profitability of riskless assets and its influencing factors.In this paper, we defined the risk-free return on assets as indicators of listed bank’sriskless assets profitability, and adjusted the above indicators based on the analysis ofcomposition of riskless assets. We discussed the influencing factors of risk assetsprofitability on listed state-owned banks and joint-stock Banks from2005to2011.Thispaper used the rather authoritative regression model established by Bergerh (1995) andDec-kunt&Huizingal (1999) and draw the conclusion that assets of listed banks and thefees and commissions ratio was positively correlated with the risk-free assetprofitability and capital adequacy and cost to income ratio was negatively correlatedwith the risk-free asset profitability.Then made a difference comparison between listedstate-owned Banks and joint-stock Banks,then analysis of the causes of differences andput forward some corresponding policy suggestions.