An Empirical Study On Profitability Factors Of Commercial Banks

In recent years,with the deepening of financial reform,commercial Banks in China is faced with increasingly fierce competition.First of all,the Internet financial is one of the hottest topic in recent years,through the Internet financial,people changed their way of life,people not only can through bank deposit and lending.In this age of the Internet bank once marginalized.Disintermediation phenomenon becomes more and more common.Direct financing channels with the constant improvement of financial market becomes more and more mature.Loan business is the most traditional business of bank,it has also suffered from severe impact.Gradually in the process of the implementation of Interest rate liberalization in our country,the market competition increasingly fierce.In recent years,foreign Banks because of its unique advantages and matured financial management system,and occupy a certain advantage in the market,China's commercial Banks can only survive in the cracks and constantly improve their operational efficiency,perfect risk management system,innovative product structure,to ensure smooth operation,to improve its profitability.So the competition environment of joint-stock commercial Banks in our country is very bad,so improving their comprehensive strength is particularly important,the commercial Banks in China have to do now is to provide high own profitability,to survive in the complex market environment.Based on 13 listed commercial Banks in China in 2010,the 2015 data as sample,using Eviews8.0,Experiment operation based on the panel data model,system and affecting factors of our country commercial bank profitability conduct comprehensive empirical analysis.And respectively from the internal factors and external factors are analyzed.About finally the empirical results,this paper on how to improve the profitability of listed commercial Banks in China,make some targeted Suggestions.The empirical results show that the GDP growth and inflation both factors are positively correlated with profitability;Assets,non-performing loan ratio and cost income ratio,cash and deposit central bank funds to total assets,the rate of Fee and commission income accounts to net interest income and Capital adequacy ratio have negative correlation relationship.This paper concluded: for bank internal factors,the moderate scale of assets control helps to improve the profitability of listed commercial Banks;Moderately reduce the non-performing loans of commercial Banks,the cost income ratio,all of these are of great help to improve the profitability of commercial Banks.For external factors,there was significant relationship between the gross domestic product(GDP)growth rate,inflation rate to the profitability of commercial Banks in China.