Research Of The Comprehensive Operation's Impact On The Profitability Chinese Commercial Banks

In 2011,"Twelve-Five" plan to further propose "actively and prudently promote the integrated management of the financial industry pilot." The core content is to support and guide the qualified financial institutions to carry out the comprehensive operation experiment actively and effectively under the precondition of effectively guarding against the financial risk,and the policy has just strongly supported the development of the integrated business model of the banking industry.In addition,under the National recognition and policy impetus,during the year of 2007-2013,China's banking industry began to dabble in many areas of the financial sector business,which indicates that the prologue of the comprehensive management of our banking industry is slowly opened.With the slowdown of China's economy,the deepening of financial market reform and the acceleration of integrated business development,speeding up the development of Integrated management strategy transformation business has become the inevitable choice of our banking industry.Since 2010,the economic growth rate has been kept within 10%,which indicates that the domestic economic development rate has been significantly reduced and the economic situation has undergone great changes in the background.At the same time,with China's economic situation is the most sticky financial industry has been hit,China's financial industry in the background has also been significantly affected.Since 2011,China's interest rate marketization reform has been preliminarily completed,the bank's deposit and loan interest rate is determined by market supply and demand,which indicates that the days when our banking industry relied on low interest rate to absorb deposit high interest rates to make profits has ceased to exist,which will lead to the increasing competition of homogeneity of banking At the same time,it also compresses the profit space of China's banking industry to a large extent.In addition,the financial phenomenon of China's capital market and the rapid development of Internet finance,further to the future development of China's banking industry has caused a great impact.Therefore,the traditional credit business of Chinese commercial banks is difficult to maintain the sustainable development of the future banking industry,and to seek new business development mode is the inevitable way of the transformation and development of commercial banks.At present,the first task of China's banking is to develop new business profit model,change the structure of business income,and promote the development of integratedmanagement.On the basis of predecessors ' research,this paper first expounds the theoretical basis of integrated management and its influence on bank profitability,then analyzes the present situation of comprehensive management of commercial bank banks in China,and finally empirically analyzes the relationship between integrated management and profitability,and selects the Net assets income(ROE).In order to be interpreted variables,the integrated Business Index-Herfindahl index div as explanatory variable,loan ratio,non-performing loan ratio,cost income ratio and capital adequacy ratio as control variables within the model,through the 2007-2016 Annual report data of 16 listed commercial banks,The panel data model is constructed and the fixed effect model is used to analyze it.From the empirical conclusion,the overall profitability of the 16 listed commercial banks in China has not significantly positive correlation,but there has been a negative reduction effect.Next,the author divides it into two categories according to the size of the bank's assets,one is four large state-controlled banks and the other is 12 small joint-stock commercial banks.The conclusion shows that,for the two types of banks with different assets scale,the effect of integrated operation is inconsistent.For the large assets of the state-owned banks,integrated management can promote the profitability of the increase,for the small assets of joint-stock banks,integrated management not only has not been able to promote profitability,but to reduce the profitability of the bank.Therefore,carrying out the integrated business does not necessarily apply to all banks,banks need to choose the appropriate business development mode according to the actual situation of their own assets,rather than blindly conformity and blindly pursue integrated management.For large scale banks,because of their large scale resources and the ability to control the risk cost,they can gain the scale advantage through integrated operation and promote the profitability.However,for banks with smaller assets,does not have the advantage of the scale,and the risk cost control ability is weak,therefore should not blindly pursue the comprehensive management,but must under the comprehensive management background promotion,looks for own business superiority actively,opens up the new business domain,enhances own profit ability.