Jinzhou Bank's Strategy Of Improving Profitability

In essence,the business goal of commercial banks is to make profits and promote the common growth of economic and social benefits.Therefore,profitability is a prerequisite for its long-term development.Improving the profitability of commercial banks not only has a major impact on their internal capital accumulation,but also attracts customer resources and investors.In addition,through profitability,it can reflect the bank's risk resilience,and it can also provide strong protection for bank depositors' claims.In summary,profitability is crucial to the survival and development of banks.With the entry of foreign banks in recent years and China's continuous reduction of the regulation of foreign banks' renminbi business,foreign banks have had a huge impact on China's commercial banks.Due to the strong capital of foreign banks,the differentiation of financial products and advanced technology,they have quickly occupied a large share of China's financial market.Under the impact of foreign banks,the pricing power of China's financial products has been seriously affected,and more market share has been eroded by foreign banks.For China's commercial banks with weak profitability,it is undoubtedly facing enormous challenges.Under such circumstances,China's commercial banks have been forced to adopt effective strategies to improve the profitability of their own enterprises,including the good handling of non-performing loans and the improvement of their own governance structure.With the maturity of the capital market,the quality customer resources of commercial banks are diverted by the capital market,which is a huge test for the operation of commercial banks.Therefore,commercial banks need to constantly reflect on and change their business philosophy to promote their own profitability.With the gradual deepening of interest rate marketization,the bank's interest rate pricing has been liberalized,and the deposit and loan interest rate has developed toward marketization.China's traditional mode of deposit and loan spreads as the main income will gradually fall behind the times.Improving profitability and changing the way income and sources have become an important issue that is imminent.There are many factors affecting profitability.Accurate,comprehensive and objective analysis of it will help the commercial bank's profitability to improve,and it has important guiding significance for the development of China's commercial banks.Firstly,to explore the profitability of China's commercial banks,banks can fully understand their own profitability,explore the deep-seated reasons that restrict their development,and then from a strategic point of view,propose corresponding solutions to these constraints,and thus their management system.The improvement of the operation mode and the adjustment of the operation mode play an important role in realizing the improvement of the profitability of commercial banks and the enhancement of the ability to resist risks.In addition,we start with a comprehensive factor that affects our profitability,compare it with the same industry,and use this to clarify our strengths and weaknesses,and develop a differentiated competitive strategy to promote our foothold in the fierce competition in the industry.In particular,the influx of foreign banks as mentioned above,through the analysis of the factors affecting commercial banks,can effectively improve the operational level and profitability of China's commercial banks,making them in a favorable position for competition.Finally,profitability is also an important evaluation index for the competitiveness of commercial banks,and its research can complement the evaluation system of commercial banks.Therefore,this paper takes Jinzhou Bank as an example to explore the status quo and influencing factors of its profitability,explore deep-seated problems,and propose corresponding strategies to change the status quo.