Profit Model Transition For Listed Commercial Banks

With the rapid development of economy and long-term financial repression,China's bank can acquire a good income and profits on the expansion of the scale.But with the deepening and promoting the marketization of interest rates,coupled with the economic impact of the "new normal",market-oriented reforms will inevitably have a big impact on the business model of commercial bank.This paper investigated the experience of developed economies and developing countries,as well as the impact on bank operation of interest rate marketization reform in Taiwan.The management mode of the commercial banks is analyzed.On this basis,using SWOT,the advantages and disadvantages of the different scale of the commercial banks are studied.Finally,more discussion of bank business transition is empirically studied.Currently,there are some main problems on operation of China's commercial banks.Non-interest income just accounts for a smaller proportion of profits;traditional business is too large;asset structure is not balanced;the lack of innovation in financial services,insufficient supply of financial products.Small and medium-sized banks are more prominent in having a small proportion of non-interest income.After the interest rate market is pushed forward and deepened,facing the new competitive environment.The advantages of large commercial banks are:extensive commercial network coverage,excellent brand and reputation,strong ability to resist risks,and systematic cooperation advantages with other financial institutions.The advantages of smaller commercial banks are:lower information costs in specific areas and regions,lower coordination costs and transaction costs,and local "protection"advantages.However,large commercial banks are facing the problems of institutional mechanism and long management chain.The disadvantages of smaller banks are mainly reflected in weak innovation and R&D capability and weak ability to resist risks.The results of empirical research show that under the deepening of interest rate marketization,the main influencing factors of profitability and growth capacity of different types of banks are different.The main manifestations are as follows:First,the profitability of large banks is sensitive to interest margins and macroeconomic situation.The influence of the deepening of the interest rate market is narrowing the interest margin,which is not conducive to the increase of the capital return of large banks.Second,the growth rate of the large bank's net profit is also sensitive to the scale,in addition to the macroeconomic factors.The larger the scale,the higher is the profit growth rate.Large commercial banks have scale advantages.Third,the growth of smaller banks is sensitive to interest rates,as well as non-interest income,also sensitive to GDP growth rates.Fourth,the robustness of smaller banking operations is critical for growth.Finally,according to the management characteristics of banks of different sizes,this paper discusses the targeted transformation plan.