Research On Influencing Factors Of Profitability Of China's Listed Commercial Banks

Recently,in the "Normalization of Monetary Policy" meeting of the Boao Forum for Asia Annual Meeting 2018,Yi Gang,Governor of the People's Bank of China,put forward:China will open up the financial industry to a large extent.This makes fierce competition in the financial market,and the relaxation of restrictions on foreign bank entry will have a significant impact on the autonomy of the RMB financial products pricing right of listed commercial banks in China,and will occupy more market shares,which will bring unprecedented pressure and challenge to domestic listed commercial banks without strong profit ability.In response to various challenges,listed commercial banks in China have taken corresponding measures to improve profitability,such as handling non-performing assets,improving governance structures,and introducing strategic investors.In addition,with the continuous improvement of China's capital market in recent years,the high-quality deposit and loan customers of listed commercial banks have been gradually diverted from the capital market.At the same time,the rise and development of Internet finance companies have had a huge impact on the operation of listed commercial banks.All listed commercial banks are required to gradually change their business ideas and improve their profitability.This article summarizes the relevant literature of domestic and foreign scholars on the profitability and influencing factors of listed commercial banks,clarifies the meaning of profitability of commercial banks and commercial banks,and summarizes the related theories of profitability and profitability of listed commercial banks.The current operating status of listed commercial banks in China was analyzed from six aspects:return on assets,operating efficiency,capital adequacy,asset quality,net interest margin,and profit composition structure.The external index system that affects the profitability of China's listed commercial banks was constructed from two aspects of the macroeconomic development of internet finance development;an internal index system that af-fects the profitability of listed commercial banks in China was constructed in terms of security,liquidity,and profitability.And make sumptions accordingly.Using Eviews 8.0 statistical software,taking China's 16 listed commercial banks as a sample from 2012 to 2016,we obtained relevant data from the Statistical Yearbook of China Central Bank,IResearch Consulting,bankscope database and its annual report,and selected the return rate of assets as a measure index.Influencing factors for panel data regression.Through empirical tests,an individual random effect regression model was established.The empirical results show that there is a positive correlation between profitability of Chinese listed commercial banks and operating efficiency,capital adequacy,bank size,loan ratio,net interest margin,GDP and inflation;and the ratio of non-performing loans,capital structure,and there is a negative correlation between bad loan rate,capital structure quality,the size of the tripartite payment transaction and the scale of P2P online loan transactions.Finally,based on the empirical results,relevant suggestions for improving the profitability of listed commercial banks were put forward.