Analysis Of The Influencing Factors Of Commercial Bank Profitability And Risk-taking

In recent years,the domestic and international situation deteriorate,leading to the development of China's commercial banks in trouble.The profit growth of banks decline steeply and NPL ratio climb.It's very important that the commercial banks are for a country's financial and economic system.For commercial banks,the strength of profitability and risk management are important factors in ensuring their long-term development.Focusing on the theoretical and empirical studies of the profitability and risk taking of commercial banks,in-depth studying relevant influencing factors and their mechanisms of action can provide theoretical support for the smooth and healthy development of commercial banks.All are in order to ensure the healthy and sustainable development of our national economy.Domestic and foreign scholars mainly study the profitability and risk commitment of commercial banks in terms of corporate governance structure,monetary policy,and macroeconomics.However,there are some differences in the existing research results.There is no conclusion.This paper studies the profitability of commercial banks and the influencing factors of risk taking through qualitative analysis and quantitative analysis respectively.Firstly,in terms of qualitative analysis,this paper describes the profitability of commercial banks by decomposing the indicators of net profit,asset profit margin,capital profit margin,net interest margin,non-interest income share,cost-income ratio,describing the nearly 6 years from 2011 to 2016 profitability of commercial banks.And through qualitative analysis,draw the factors that affect the profit growth of commercial banks from the interest rate level,the implementation of monetary policy,the level of risk control and the bank's innovation ability.Secondly,in quantitative analysis,relevant variables such as bank profitability,risk commitment,bank's own characteristics,and monetary policy were selected,and a dynamic panel model on bank profitability and risk exposure was established to further explore the impact on the profitability and risk taking level of commercial banks.Of which the choice of bank data,this paper selects 15 years from2002 to 2016,154 commercial banks Operating data includes all the 5 state-owned banks,12 all shareholding banks,83 most city commercial banks,21 rural commercial banks and 33 foreign-funded banks.The bank sample selected in this paper is representative.Compared with the total assets of the banking industry,the total assets of the sample banks accounted for more than 90%.According to the final results of the model,the characteristics of banks themselves as well as the currency market and monetary policies all affect the profitability and risk taking results of commercial banks at varying degrees.And the impact on different types of banks is far behind.According to the model results,the paper stands separately monetary authorities,the market perspective and the bank's own point of view on how to formulate monetary policy,how to develop the market level,how to improve the bank management level so that commercial banks can make more steady and healthy development of policy recommendations.