Research On Profit Model Of YT Rural Commercial Bank

Along with our country economic growth continued to slow,optimizing the economic structure,China's economic development has entered a new stage of development,where the challenge is more difficult and complex.The marketization of interest rates has made the financial system closely linked to the real economy,especially the banking system,which shows a trend of slowing down in scale,diversifying the economy,and highlighting risk factors.In 2015,the opening of the deposit interest rate marked the completion of China's interest rate marketization reform.China fully liberalized the access mechanism of private banks.The establishment of many private banks has intensified the market competition of commercial banks.However,China's commercial banks are still developing under the traditional profit-driven profit model.In particular,the rural commercial banks' net interest income accounts for more than 80% of their total income.The gap between the rate of deposit and loan has been narrowed and commercial banks' profitability has been declining.Today,with the new normal of economic development,the gradual liberalization of financial markets,and the booming of Internet finance,the traditional deposit-loan profit model of commercial banks is greatly challenged.This requires Chinese commercial banks to be more clear about their own positioning,thus,transforming their profit model in a better way to support the development of the real economy with greater strength,and thus achieve the benign interaction and coordinated development of finance and the real economy.Based on the above research background,this paper tires to do research on the transformation and optimization of profit model of YT Rural Commercial Bank.In recent years,YT Rural Commercial Bank has continuously strengthened product innovation,marketing services support,and has created a rich product system.Thus,its profit has increased year by year.However,influenced by new normal interest rate marketization,the new normal of economic development and the development of Internet finance,the profitability of YT Rural Commercial Bank are facing great challenges.Therefore,this article first expounds the background of the research significance and literature review;Next,on the basis of summarizing the theory of relevant profit models and absorbing the experience of foreign commercial banks' profit models,the current profit model of YT Rural Commercial Bank is analyzed from the source and structure of operating income.The main problems of the current profit model of YT Rural Commercial Bank are: high interest rate net income,concentrated the interest income source,single the debt source,low non-interest income business scale,biased middle business,low innovation ability,etc.Finally,this paper provides rationalized proposals for the optimization of YT Rural Commercial Bank's existing profit model from the aspects of optimizing the income structure,innovating retail business,precisely positioning key customer groups,strengthening marketing service support and improving risk response capabilities.