Research On X Bank's Countermeasures To "BT Reforms To VAT" To Improve Business Performance

In recent years,with the innovation of domestic financial industry,taxation has become an important factor that affects the profitability of commercial banks.After the financial industry " BT reforms to VAT",due to the need for many reasons such as the use of commercial banks and new tax policies,the tax burden of commercial banks has risen during the period after the " BT reforms to VAT ".This has obviously adverse effect on the profit and operating performance of commercial banks in China,and it is also contrary to the original intention of the country to implement " BT reforms to VAT " Therefore,it is of great significance to study the countermeasures of the commercial banks to improve their business performance.In order to study the countermeasures of commercial banks to improve their own business performance,the paper first based on the influence path of " 'BT reforms to VAT'-tax burden-net profit-business performance" and the "enterprise business performance evaluation index system".This paper analyzes the relationship between the tax burden,net profit and operating performance of commercial banks,and concludes that the increase of tax burden will lead to the decrease of net profit and the decline of operating performance.Then,taking the example of X Bank,a branch of a large joint-stock bank in Hunan Province,as an example,the problems faced by X Bank after the " BT reforms to VAT " and the impact of these problems on the operating performance of X Commercial Bank were analyzed.Finally,based on the above problems and impacts,this paper puts forward the countermeasures of how to maximize the negative advantage of " BT reforms to VAT " and minimize the negative risk of "BT reforms to VAT" to improve its own business performance.Based on the X bank's analysis,this paper puts forward suggestions for improving the X bank's operating performance from the four capabilities for evaluating X bank's operating performance.First,the proposal to improve profitability:(1)Improve product pricing mechanism,(2)Optimize cooperation partners to increase input credits,(3)proportion and pay close attention to local government's "reformation increase" tax incentive policies;second,suggestions for improving operational capacity:(1)increase risk awareness,enhance risk control capabilities,and select quality customers(2)Strengthen internal control to increase opportunities for cooperation with high-quality customers.Third,improve solvency:(1)reduce the amount of interest payments,(2)delay interest payments,and(4)increase the capacity for development.Suggestions:(1)Strengthen the system transformation,optimize the taxation process,(2)establish and improve the relevant institutional functions,enhance the quality of related personnel,(3)actively carry out business innovation,advance with the times,and tap new profit growth points.