The Effect Of Intermediary Business On The Profitability Of Commercial Banks Of China

In recent years,the commercial banks in our country have generally shown a sound and good operating situation,and the growth trend of the scale of assets and liabilities is relatively stable,but those index of correlation like yields on assets and returns on net assets,which measure the profitability of banks,are lower than before,the increasing net profit of commercial banks is influenced by the decreasing net interest margin of commercial banks and the improvement of cost-income ratio.The decline in bank interest income is mainly attributed to the decline in the rate of return on new loans and the contraction of bank industry spreads.In our country's modern new context,with the development of interest rate liberalization and internet finance,the traditional business of commercial banks have suffered to a large extent.Under the new economic pattern,the challenges and pressure that commercial banks encountered have increased a lot.Therefore,it's very important for commercial banks to enhance their own capabilities,combining current economic background with their business features.From analyzing the impact of intermediary business development and its structure,we find out that the development of intermediary business has different impact on the profitability of various types of commercial banks.Or to be more precise,its impact on banks' operating performance is not linear,but increases at first and decreases late.That is to say,with the development of intermediary business,the profitability of commercial banks is improving.Besides,the structure of intermediary business also influences the profitability and new intermediary services are playing a more important role.Hence,in order to ensure the profitability of commercial banks,it is necessary to develop intermediary business scientifically and properly,improve its business structure and its risk control.