The Study Of The Profitability Of The Four State Commercial Banks

In the ranking " Top 1000 bankers worldwide" , released by British magazine " the Banker " , the four state commercial banks of China rank top, both in capital and total assets, but they are exceeded by more than 600 competitors in ranking of profit index, therefore, there is particular gap in profit ability in comparing the four state commercial banks with worldwide banks.Along with the technical progress and the fast development of network, the globalization has become the irresistible tendency to international finance development. Under this background, Chinese banking industry is facing the huge challenge, especially in the end of year 2006, Chinese finance industry is comprehensively open to the foreign banks, the foreign banks could develop finance service without the limit of the region and the type in China relying on its abundant capital strength, the multiplex financial service, the modernized technical methods and bring the enormous competition pressure to Chinese commercial banks. As a result of the historical reasons, Chinese commercial banks, especially the state-owned banks the existent following problems: worse assets quality, the insufficient management level, lower innovation ability etc. After financial system reforms of a lot of years, the original problems already had some improvement, but after the Chinese comprehensive opening to foreign banks, Chinese state commercial banks must improve the property quality and value the profit ability to get quicker enhancement. Therefore, this article discusses the primary factors to affect Chinese state-owned banks' profit ability through the comparison of the domestic and foreign commercial banks' profit ability. Finally, the article proposes banks. This article introduced the relative theories and methods and analyzed the present situation and the existent problems of Chinese state-owned commercial banks' profitability, at the same time, writer analyzed the primary factors to cause long-term low profit ability of Chinese state-owned commercial banks from the theory analysis and the real diagnosis analysis. Then the article discoveres the disparity between the four domestic and foreign banks through the comparative analysis and points out their successful experience and the enlightenment. Finally, the article proposed the suggestions to strengthen profit ability of Chinese state-owned banks.Therefore this article's frame is: the first chapter, the introduction, it mainly introduces background of the topic, the research significance and the research present situation. The second chapter elaborates relative theories and main methods of commercial bank' profit ability. The third chapter elaborates Chinese state-owned commercial bank's present situation and the existent problems, and the multiple factors to affect the profitability of four state-owned banks. The fourth chapter discovers the disparity between the four domestic and foreign banks through the comparative analysis and point out their successful experience and the enlightenment. The fifth chapter, the article proposed the suggestions to strengthen profit ability of Chinese state-owned banks.