Research The Influence Of Financial Disintermediation On The Profitability Of China’s Listed Commercial Banks

With the continuous deepening of the reform of the financial system and the continuous advancement of financial de-leveraging,China’s financial market has undergone tremendous changes.In recent years,the rapid development of China’s shadow banks have continuously changed the credit channels of the banking industry.In addition,the emergence of Internet finance has put pressure on the traditional business practices of banks.From the opening of the stock market in the last century to the emergence of currency funds in the century,and then to the development of margin financing and securities lending transactions,the domestic banking industry is increasingly affected by financial disintermediation.Banks not only need to worry about the loss of deposits,but also face the pressure of reform and transformation.China is in a tough economic restructuring period.The deepening of the reform of the financial system will cause the banking industry to face reform pressures,which makes China’s financial disintermediation to have its own unique characteristics.This paper mainly includes three parts.The first part includes the first two chapters,describing the background of the development of financial disintermediation in China,and summarizing relevant domestic and foreign theories and literature;the second part includes Chapters 3 and 4.In this part,firstly discussing the status quo of China’s financial disintermediation and the reasons,and then analyzing the ways in which financial disintermediation affects listed commercial banks.The third part includes the last two chapters.This part is mainly based on relevant empirical analysis and draws conclusions,and accordingly provides targeted opinions for the development of listed banks.This paper mainly studies the impact of financial disintermediation on the profitability of listed commercial banks.After using relevant data to do empirical analysis,theoretical studies and analysis of actual conditions conclude that there is a negative correlation between the disintermediation of listed bank assets and the profitability of banks.Banks should focus on improving the scale and quality of assets;there is a positive correlation between debt disintermediation of listed commercial banks and the profitability of banks,and banks should pay attention to the cost of deposits in order to increase their profitability.There is an inverse relationship between the disintermediation effect of listed commercial banks and profitability,which is different from the theory.This is closely related to the stage of development of China’s financial market.At the same time,the deepening of asset disintermediation can affect the proportion of non-interest income and thus enhance the bank’s profitability.The non-performing loan rate will reduce the bank’s profitability.At the end,the article put forward specific recommendations for the development of listed commercial banks: Firstly,listed banks must maintain the development of traditional businesses.Although traditional businesses continue to show declining trends,they are still the main source of income for commercial banks.Secondly,actively developing intermediate businesses is a trend of development.Thirdly,we must actively integrate into the Internet system and use powerful information technology to develop our own business,Finally,we must focus on risk management in order to achieve steady development.