A Study On The Impact Of Commercial Banks' Intermediary Business On Profitability

In the international context of internationalization and liberalization of economy and finance,domestic commercial banks have been fully liberalized since 2006,and foreign banks have entered the Chinese market.Their excellent business management ideas,adequate capital support and leading modern Information technology,to the domestic deposit and loan business-based operating profit model of commercial banks has brought fierce competition.In particular,the business model of the five major commercial banks of China Industrial and Commercial Bank,China Construction Bank,Agricultural Bank of China,Bank of China and Bank of Communications,which are the main source of profit and loss as the main source of deposit and loan interest,has been challenged by industry and supervision.In order to alleviate the pressure from regulators,markets,customers and other aspects of domestic commercial banks with reference to the business model of foreign commercial banks,the implementation of diversified business strategy,have begun to develop intermediary business.At present,China's commercial banks are less on the types of intermediate business products,with similar types of intermediate business among peers,and lack of innovative financial products and services.The lack of understanding of the role of commercial banks in the different components of the middle business,the lack of scientific and reasonable data support on how the different components of the intermediary business should be developed on a reasonable basis.Therefore,this paper explores the relationship between the net income of the intermediary business and the profitability of the bank by constructing the multiple regression model.On the basis of summarizing the relevant literatures of scholars,this paper starts from the qualitative point of view to clarify the development and profitability of the state-owned commercial banks,and then study the net income of the intermediary business and the profitability of the banks from the quantitative point of view The relationship between the ability to find the middle business net income and bank profitability showed a significant positive correlation.The bank's intermediate business net income accounted for as much as 1%,then its profitability can be significantly increased by 0.044%.And then through the establishment of multiple regression model,an accurate analysis of the intermediate business part of the income of the middle of the role of the net income of the middle of the business,and then through the establishment of multiple regression model,On this basis,the proposed state-owned commercial banks to increase the intensity of the development of innovative business,mainly to adhere to expand the electronic banking business,moderately promote the guarantee and credit commitments business,broaden the trust and other entrusted business,professional consultancy business,Card business,and actively carry out agency business,innovation settlement and settlement business,expand financial products business,so as to promote the development of innovative intermediary business while taking into account the traditional intermediary business.Thereby enhancing the profitability of state-owned commercial banks.