Research On The Impact Of Retail Business Development On Profitability Of China’s Commercial Banks

In recent years,with the promotion of interest rate liberalisation in China and the rapid rise in non-financial institutions,commercial banks are facing an unfavourable situation in which profits are scarce and customer resources are being robbed.It is urgent to explore new profit growth points.From the current strategic transformation of banks,the growth of retail business is a continuous trend of banking industry.By formulating retail business development strategy and strengthening attention to the field of retail business,commercial banks can continuously improve their profitability.That is why it is important to learn the relationship between retail business and commercial bank profitabilityAfter exploring so many scholars from homes and foreign,this paper analyzes the mechanism for inflationary use of China’s commercial banks at theoretical level.Then it analyzes the development of retail business in commercial banks in recent three years,noting that the scale and proportion of China’s retail deposit and loan business are increasing every year.There are obvious differences between different types of commercial banks.Non interest retail income is lower than the level of business development.By sorting out the strategic deployment of different types of commercial banks in retail business,the trend of retail strategy is summarized to provide a basis for the policy suggestions in the following paper.Then,in terms of the ratio of retail profit sales and the proportion,this paper has been used for dealing with evil in order to profit commercial banks,because the profit and profit of evil firms has also increased.And there is an obvious gap between different types of commercial banks.After that,41 listed commercial banks in China’s A stock market are comprehensively inspection,and the relevant data from 2010 to 2020 of the annual and semi-annual reports of 13 listed commercial banks are finally selected for empirical analysis from the perspectives of retail business interest income and retail business income diversification.The results show that: The net interest rate range of retail banks and the diversification of retail transactions have a significant positive impact on profitability.Next up,demonstrates all commercial banks in two groups,and the results show that the development of retail transactions in large State-owned commercial banks is a forerunner.Through a series of analysis,we can find the positive impact of retail business development on commercial banks’ profitability.Commercial banks can actively develop the retail business,improve business conditions,achieve sustainable development.This point shows that the sustainable development of retail banking and the retail conversion strategy are strongly supported in theory.Finally,combined with research results on the retail development of national commercial banks and the research results,This thesis puts forward a number of strategic proposals to promote retail development and improve the profitability of commercial banks.