Research On The Impact Of Intermediary Business On The Profitability Of Commercial Banks

In the face of the gradual deregulation of interest rates by the state and the changing international economic situation,the phenomenon of financial disintermediation in China has become more and more significant.The traditional mode of capital financing is constantly changing,the position of commercial banks as the main body of the market economy is constantly threatened,the spread between deposits and loans is constantly shrinking,and the outbreak of the new crown epidemic has a greater impact on the business development of commercial banks,and the profitability of banks is constantly under attack.In order to enhance the profit level,commercial banks need to change their business model,improve their business structure and find new development paths,and intermediate business is undoubtedly the best choice for commercial banks’ business development in the new situation.This paper understands the current status of research on the impact of commercial banks’ intermediate business on profitability through research integration of related literature at home and abroad,based on which theoretical analysis of the impact relationship between the two is conducted and the development status and problems faced by intermediate business are summarized,and an empirical study is conducted on the basis of the above qualitative analysis combined with quantitative analysis.Taking 18 listed commercial banks in China as the research objects,we conduct multiple regression analysis on their financial operation data from 2011-2021,select return on total assets(ROA)as the explanatory variable,and the percentage of income from intermediate business and the percentage of income from six types of sub-businesses of intermediate business as explanatory variables respectively to construct a model to explore the direction and degree of influence of intermediate business on ROA.In the empirical process,18 commercial banks are divided into three types: state-owned,joint-stock and urban commercial banks,and the impact of intermediate business on ROA of different types of banks is investigated.For state-owned banks,the income from bank card business and investment banking business can significantly improve bank profitability;for joint-stock commercial banks,payment and settlement business,agency business and investment banking business are significantly positively related to bank profitability,while the income from bank card business has a significant negative relationship with bank profitability For urban commercial banks,agency business and investment banking revenue have a significant contribution to bank profitability.Finally,on the basis of theoretical and empirical analyses,the optimization suggestions of implementing differentiated development strategies for different types of commercial banks,strengthening business innovation and improving talent training mechanisms,as well as establishing a sound legal and regulatory system and implementing moderate supervision policies are proposed in the hope that they can help commercial banks improve their profitability.