Study On The Profit Model Of Commercial Bank In China

After "three steps" reform, Chinese commercial banks have made progress in the phrasal sense and they become noticeable during the 2008 international financial crisis. However, it still exists that Chinese commercial banks are big other than strong though their financial data seem presentable. There are gaps in earning patterns between Chinese commercial banks and commercial banks from developed countries. In the process of transition from planned to market economy, market imperfections still exist. The government enforces rigorously rules and regulations. The earning patterns of Chinese commercial banks are of following characteristics:revenue from interest rate gap is the main part of total income, intermediary business revenue and investment revenue are still of small ratio. These earning patterns will be hard to continue. Chinese commercial banks face stricter shareholder constraints, capital constraints and regulations after non—tradable shares reform. Especially interest rate gap becomes narrower with the development of marketation of interest rate. It is inevitable for Chinese commercial banks to change and improve their earning patterns. They have to devote major efforts to transform their earning patterns to adapt capital and shareholder constraints of post non—tradable shares reform, to get with rigorous regulation of post crisis era.This dissertation aims at analyzing the earning patterns of Chinese commercial banks according to the train of thought from putting forward problems, and then analyzing problems, to solving problems. First, basing on the literatures reviewing, I research the pressure and challenge put on the earning patterns faced by Chinese commercial banks taking finance globalization into account. Second, I compare the development and characteristics of earning patterns of Chinese commercial banks and those from western countries from view points of theory and practice. Third, I analyze how the international financial crisis influences the earning patterns of commercial banks from western countries. I deeply research the shortcomes of financial regulating system expressing in the crisis and put forward the future development orientation. Meanwhile, I study the problem of earning patterns of Chinese commercial banks using DuPont analysis method. Last, I image the development trend of Chinese commercial banks' earnings patterns and put forward suggestions from viewpoints of market circumstances and institutions. In this dissertation, I find and make conclusions that the development of financial institutions are consequences of games among parties of sharing profits; market factors and institutions are the main factors inflowing earnings patterns of commercial banks, this finding is the same as relative literatures; market factors are domain factors and institutions are premise. However, in transitions countries such as China, market can not provide enough power and push forward the development of earnings pattern because of strict regulation from government. So the influence from institutions is stronger than that from market. Based on above analysis, I suggest that the development directions of Chinese commercial banks' earning patterns are from demined by interest rate gap to demine by intermediary business revenue. The transition is the consequence of equilibrium between external financial institutions constraints and commercial banks' internal operating revolutions. With the improvement of commercial banks' innovation, marginal benefits from external financial institutions will decrease. Market institutions will substitute government regulations and improve the efficiency of financial system. Chinese commercial banks have to innovate to fulfill the earnings pattern transition.