Research On The Influence Of Foreign Equity On The Profitability Of China's Commercial Banks

For a long time,under the influence of China's economic development,China's commercial banks have played an important role in meeting the needs of social capital.However,due to the impact of foreign banks and the development of the capital market,China's financing model is gradually changing,and the traditional profit model of China's commercial banks to earn interest spreads is being severely challenged.In order to meet the needs of economic development and the needs of the reform of commercial banks,the country has gradually liberalized the conditions for the holding of foreign shares in China's commercial banks.China's commercial banks are also constantly deepening reforms to improve the governance model of commercial banks The profitability of commercial banks.This article combines the profitability of China's commercial banks with foreign shareholdings to explore whether changes in the proportion of foreign shareholdings will affect the profitability of commercial banks.The domestic and foreign researches on foreign shareholding and the profitability of commercial banks are relatively rich.The previous scholars' research provides a good foundation for the research in this article.This article is mainly divided into the following parts for introduction: Chapter 1 is the introduction part of this article,which mainly summarizes the current research and conclusions about foreignowned shares and commercial bank profitability,discusses the current development of relevant research theories and conducts literature Summary.The second chapter is the description of the status quo of the profitability of foreign banks 'shareholding in China's commercial banks.Based on the research theme of this article,it mainly describes the current status of foreign banks' shareholding and profitability of commercial banks.The third chapter is the explanation of the mechanism by which foreign shareholding affects the profitability of commercial banks,and discusses the operation mechanism of both with commercial banks and profitability.The fourth chapter is the empirical analysis of the core part of this article.This article selects 15 listed banks as the research object,and the time span of the data used by the research object is 2007-2019.The introduction of control variables that may affect the profitability of the bank,foreign investment The impact of equity on the profitability of commercial banks.The fifth chapter tells the conclusions and countermeasures of this paper.After the previous theoretical analysis and empirical research,we can draw conclusions,and put forward countermeasures for possible problems based on the actual situation in China.This paper combines the development status and empirical research of commercial banks at the current stage to conclude that the profitability of commercial banks first increases and then decreases with the increasing proportion of foreign ownership.Therefore,commercial banks should treat the introduction of foreign equity in a rational manner to prevent excessive introduction of foreign capital.This leads to a decline in profitability and an increase in operating risk.The capital has the nature of profit-seeking.Financial supervision departments should properly monitor the characteristics of commercial banks in accordance with the characteristics of commercial banks,try to balance the profitability and risk level of commercial banks,and promote the healthy and stable development of commercial banks.