Research On The Profit Model Of Guangxi City Commercial Bank

The completion of interest ratesliberalization in China,the continuous deepening of financial reforms,the entry of private capital and foreign capital,and the rise of Internet financehave brought great challenges to banks that are highly dependent on the spread of deposits and loans.Customer reduction,financial disintermediation and intensified competition in the industry have reduced the commercial banks' living space,andincreasingly catalyzed the accelerated transformation of commercial banks to find a suitable profit model to ensure their survival,development,and maximization of value in a fierce competitive environment.Therefore,large-scale commercial banks in China are accelerating the pace of innovating business products,rapidly transforming profit models,and promoting the development of intermediate businesses.However,due to limitations in scale,technology,and talents,the municipal commercial banks in China,particularly in Guangxi,are limited in all aspects.The investment in financial innovationis insufficient,and after the dividend of interest rate control policy fades,how to find an effective profit model in such an intricate environment to maintain the steady development of the bank is a very significant research topic.This paper first elaborates the development situation of municipal commercial banks,indicates the overall macroeconomic background of municipal commercial banks and summarizes several types of profit models of commercial banks under the current study background of domestic and foreign scholars.And then it lists cases of three municipal commercial banks' behaviors in Guangxi as examples to analyze the bank's development history.In this context,the bank's financial status is analyzed with actual data.Again,combining the annual report data to analyze the specific composition of each bank's operating income,summarizing the problems existing in the three banks' profit models and the new trends presented by them,it is concluded that the profit models of the three municipal commercial bank are similar.There are two main channels: First,interest income,it is mainly reflected in the interest income from loans;the other is non-interest income,which is mainly based on the fee and commission income and other business income.Finally,based on the theory and case studies,the suggestions for the transformation and development of the profit model for the municipal commercial banks in Guangxi are presented: First,adjust the structure of assets and liabilities and do a good job of refine management.The second is to optimize the structure of intermediate business products,increase the degree of contribution,and expand new profit margins.The third is to rationally use derivative financial instruments,optimize the investment business structure,and increase the level of returns.The fourth is to optimize the traditional deposit and loan business and stabilize the net interest income.Fifth,establish a cost accounting system,reasonably control costs,and do a good job of cost management.The sixth is to strengthen the construction of high-quality financial teams and actively respond to changes in the profit model.Seventh,strengthen the management of asset quality,increase the disposal of non-performing loans,and improve the level of risk prevention and control.