An Analysis Of The Profitability Of Chinese Commercial Banks

Along with the economic globalization and the rapid development of the Internet,China's banking industry is facing enormous challenges,on the one hand,after Chinese joined WTO,foreign banks can rely on technical means of its strong capital strength and diversified financial services and modernization into the current domestic bank dominant business,bring greater the competition pressure to the commercial banks in China.On the other hand,the rapid development of Internet banking has intensified competition in the domestic banking industry.There is no doubt that in the face of the fierce competition of foreign banks and the impact of Internet banking,improve their competitiveness is an important way in the competition first,while profitability is the most important part of the competition.Academic research on the profitability of commercial banks,including the definition of profitability of commercial banks,the profitability of the factors affecting the profitability of the empirical analysis.On the basis of former studies,I will state the listed commercial banks into state-owned commercial banks,national joint-stock commercial banks and local commercial banks in three categories,from the internal factors and external environmental factors of two aspects of bank were investigated for the three types of bank profitability impact,and using panel data from 2009 to 2016 the establishment' of the econometric model for empirical analysis,comparative study on these factors significantly affect the mode of action,and the influence degree,finally put forward policy recommendations.The basic structure of this paper is divided into five parts:The first chapter is the introduction,which mainly introduces the research background,research significance,research methods,the basic structure of the thesis,the possible innovation and deficiency,and so on.The second chapter is literature review,using the theory of economics of deduction and induction,the basic concept of normative analysis of commercial bank profitability and the related research literature,then collect research related to the profitability of commercial banks at home and abroad are summarized in the previous literatures.The third chapter from the bank's internal factors and external environment factors of normative analysis on the factors affecting the profitability of commercial banks,the bank internal factors include deposits,loans,asset quality,intermediate business,capital adequacy,liquidity,asset size and other aspects,while the external environment factors mainly from the influence of GDP on profitability the investigation.The fourth chapter is the empirical analysis,first of all the types and sources of data are introduced,then from several ROA,ROE,net profit and total operating income and other aspects of the three types of bank profitability by descriptive statistical analysis,then established the econometric model,the profitability of three kinds of banks are positive based on the empirical analysis,the analysis conclusion for the different nature of the bank gives policy recommendations,such as state-owned banks should be mainly through the promotion of the quality of assets to improve profitability,joint-stock banks should vigorously develop intermediary business,accelerate the absorption of deposits and improve the capital adequacy ratio,while local banks should pay attention to improve the quality of assets,rather than blindly development intermediate business.The fifth chapter is the summary of the article,on the basis of summarizing the research conclusion,the author gives some suggestions for the future research.