The Transformation Of The Profit Model In Commercial Banks:Reason?Influence And Countermeasures

At present,national economy develops into the “new normal” model----economic growth slows down and brings much pressure.The banking industry is a typical economic cycle industry.To keep up with the new situation of the economy,the banking industry is also moving into the“new normal” model,with the increase in non-performing loans and slowing profit growth.Profitability is the primary target of the management of commercial banks.As the business for profit,the maximization of profit is the core of its pursuit.In the face of the constantly narrowing profit space,if commercial banks want to get out of the trouble under the new situation,they must deepen the reform,and promote the transformation of the profit model.The profit model of commercial banks refers to the way to gain the max profit.The profit pattern of commercial bank determines its profitability,market competitiveness and etc.For a long time,because of the decentralized management and interest rate control,the gap between deposit and loan business is quite big,which makes national commercial banks rely on the single profit model----profits between deposit and loan as the source of profits.In recent years,with the change of business environment,the traditional profit model is difficult to achieve rapid profit growth.the banking industry begins to think about change its profit model and try developing to the diversified income structure----expanding the source of income through the development of non-interest income.In this paper,the main research objective is to study the transformation of the profit model of national commercial banks.Through theoretical and empirical analysis,it aims at providing national commercial banks with guidance to the direction of transformation.The data of 58 commercial banks in China from 2010 to 2015 are chosen as the research object,reasons and influences of the transformation of the profit model in our commercial banks are analyzed.The reasons include the changes of external environment and current operation situations.As for the influences,the stability and performance of commercial banks are studied.The results show that the non-interest income can spread risk and improve the stability of the operating income of commercial banks.The development of non-interest income and the diversification of income structure can significantly increase the performance of joint stock commercial banks while to the city commercial banks are not significant visibly,transforming to the profit pattern of diversifiedincome structure is effective.The shareholding commercial banks have been transformed to diversify.Non-interest income holds relatively higher proportion.With the transformation of the profit model,performance can be significantly increased.National commercial banks should stick to transforming profit model to the diversified income structure.