Analysis On The Factors Of Profit-making Ability Model Of Commercial Banks In China

The most important factor of the ability that the commercial bank make development to survive is the ability to making profits .So the commercial banks of various countries put this index of the profitability on the first place. For the reason of implement planned economic system for a long time, the commercial bank of China often only paid attention to the expansion of the scale in the past, but ignored the most important profitable index of the bank. According to the rank of the international authoritative organization, the four major state-run commercial banks of China all come out at the top on the rank of total assets in first class capital, but the rank of the profit index is after 600.In some foreign studying on state-run bank of China of advisory company, the state-run commercial bank in China also has the big problem in security and efficiency.Because what the bank deals with is the currency, and most working capital comes from the public's deposit and other various in debts. There is very great influence on the credit system of the whole society in the security of management of bank. " Treaty of Basel " which the banks of various countries issued in 1988 when observed sanctified by usage just regards risk management as the key content, so the studying is more about the security and flow ability of management of bank in the past, and study on profit ability of the bank is less. But for any enterprise, good profit ability could guarantee enterprises for a long time development. Now the ability of making profit of Chinese commercial bank is low in the past. For shareholder and investor, it is the purpose that they invest in to make profits. So only the commercial bank of the profit with strong ability could make their investment receive the repayment. To the public, stronger profit ability is that the bank resists the assurance of relevant risks. So, it is very important to research the profit ability of the bank.At present, four major state-run banks transformed into real commercial bank, causing the concern about its ability of profit. There are Mainly two kinds of analysis on domestic profitability of commercial bank. At present, the first kind passes and analyzes other factors such as the efficiency of the bank and assets state and investigate the profitable state of the bank from the side. The second kind of thinking will be placed on the direct investigation of the profitability of commercial bank especially. It is mainly that the angle analyzed from the financial affairs sets out, and pass the main profit index of commercial bank correctly such as variation tendency that profit rate of the capital, assets earning ratio wait within a few years and comparing with the other banks and analyze the profit ability current situation of the bank of the influence factor. But adopt and measure the economic model, is very limited to the literature which the commercial bank analyzes the extensive real example. This text attempts to adopt and measure analyzing the tool breaks through this restriction.On arranging in structure in the thesis, this text is divided into an introduction and five chapters:Chapter one mainly introduces background, meaning, literature survey, main content and innovation of the thesis that studies of this selected title to click for the introduction.Chapter two carries on the profitable influence factor of Chinese commercial bank and standardizes analysis. Relevant argumentation of different literature and experts and scholars of synthesis, summarize the profitable influence factor of commercial bank as the commercial bank's own factor and environmental factor of the external macroeconomic. One's own factor is summarized as assets quality, capital sufficient degree, mobile state, operation efficiency and so on. The external influence factor is divided into the prosperous state including economic activity and legal system factor. Construct the intact system of influencing the profitability of commercial bank from the microcosmic and capital aspect.Chapter three introduces the real example model of the profit ability of the bank. This text analyzes the real example from the financial index between these 6 years of 1999 and 2005 to 14 main commercial banks in China through adopting the panel data model. This chapter has introduced definition, the method of the panel data especially. In this model, classify the index of the data according to the shareholding system commercial banks of the state-run commercial bank and general property at first, go on, merge, analyze to data propose, suppose, examine, in order to prove state-run commercial bank and shareholding system among the commercial bank in profitable reason and then Plain rooms of consistency of existing.Chapter four adopts the real example method to study the profit ability current situation of Chinese state-run commercial bank. This text will influence the profitable factor of commercial bank to divide into two big classes of the bank's own relevant characteristics and influence factor of the external environment condition. Select specifically: Earning ratio of the assets (ROA), the net loan balance takes the total assets proportion (NL/TA), loan losses provide and take the total assets rate (LLR/TA), the capital of rights and interests takes the assets rate (EQ/TA), the cash assets take the rate of total assets (LIQUIDITY), it is not the proportion of interest expenses to total assets (OVERHEAD), the total assets quantity (TA), gross domestic product (GDP), inflation rate (INFLATION), deposit take ten indexes such as the total assets proportion (DEPOSIT / TA), use the panel data model to carry on the analysis of real example to the state-run commercial bank and commercial bank of the shareholding system separately and joining the two kinds of banks together and merge to analyze, appraise the profit ability state of Chinese commercial bank on this basis again, and has done the analysis in the deep economic meaning to the data analyzed.Chapter five combines the first four seals of real example analysis results, has put forward the tactics suggestion of improving the profit ability of Chinese commercial bank. On the basis of analyzing that influences the internal factor of the profitability of commercial bank. Adjusting the volume of credit appropriately, accelerating every bank's construction of the accounting system, several measures of advancing the reform of commercial bank " doing away with a hierarchical system " etc. And making focus on the external condition, the development proposing needing to keep the whole national economy healthy and fast, strengthen the reform of the capital market of our country, improving the measures such as every legal system that the commercial bank supervising and create the good external economy environment for managing in the commercial bank of our country.The respect that this text awaits to be further discussed while studying afterwards thoroughly is as follows, first of all, because of the limitations of the difficulty of data collection and time span, making the real example model may present some inaccurate places in examining, therefore this text merges the time sectional data to analyze the profitable factor which influence the whole commercial banking of China limited. Secondly, the analysis of the economic meaning of the model parameter needs further investigating thoroughly. But through analyzing that investigate the impact on profitability of the concrete index, the current situation that the Chinese commercial bank makes profits of enabling us to understand objectively, in order to improve the profit level of commercial bank of our country, strengthen the competitiveness of the Chinese commercial bank to offer valuable information. So this can yet be regarded as a kind of very good thinking and attempt.