Study On Profitability Factors Of China's Listed Bank

China is the fastest growing economies in today's global economies. Began in 2007, declared the global financial crisis, sustained rapid economic growth era. China's economic growth bottomed out in early 2009, although since 2010, has achieved strong growth, but China's economic growth is still mainly affected by government investment and consumption to support private sector investment is still low; in respect of employment, because of the economic recovery The foundation is not very strong, the uncertainty of the international economic environment has led to shrinking external demand situation continues, some domestic industries, a number of enterprise production and management is still relatively difficult, and therefore short-term employment is hard to alleviate the pressure. Therefore, the structural adjustment process in China's economic growth is still faced with greater uncertainty.Rapid economic growth in the banking sector played a crucial role in the financing. As the market environment changes, the high interest rate banks may bring prosperity gone, high-risk low-profit era will be the biggest reality of domestic banks. Spreads narrowed in a series of factors working together, growing pressure on banks increases. But a long time by many factors, interest income has been the main source of profit for domestic banks. On the one hand, the main business with the bank deposit and lending rates are still relevant under control, the interest rate differential of domestic banks was significantly higher than the average level of international banking. On the other hand, China is still in the implementation of "separate operation, separate supervision," the bank can not directly engage in securities, insurance and other non-banking financial business, it is difficult to obtain the corresponding non-interest income. In addition, the development of intermediary business of banking policy and legal environment is not ideal. Some people are reluctant to accept fee-based businesses, and subject to the constraints of public opinion, non-interest business development difficult. Aware of this, the four major state-owned commercial banks and joint-stock banks have taken measures such as strengthening brand building and strengthening the capacity of deposit and loan pricing, deposits and loans to enhance marketing efforts, and actively expand the intermediate business to improve its profitability. After the analysis is not difficult to find, these measures are mostly based on the marketing point of view, although a short time to achieve a capacity increase, the expansion of the line of asset size does spreads effectively alleviate the revenue decline. To avoid an even greater degree of volatility in profits. But the negative effects to be overlooked, such as credit quality of resources significantly decreased the risk of liquidity risk and capital adequacy ratio declined rapidly, and so on. Analysis of the reasons is because these measures are not from the bank's management to start, but simply for the isolation between the line moves. Therefore, in order to fundamentally improve the profitability of commercial banks, commercial banks have business logic from the start, explore and analyze the impact of income (interest income, non-interest income) is the determining factor.Based on this, drawing on bank profitability of foreign study advanced theory and modeling approach, using a combination of theory and practice of qualitative analysis and quantitative analysis of combined normative analysis and empirical studies combining research methods, in the current situation of China's banking industry descriptive analysis, based on the bank itself to explore factors, macroeconomic indicators and policy factors on bank interest income, non-interest income determined relationship. In this study, panel data fixed effects model and mixed regression model, the 14 listed commercial banks in 2004-2010 a total of seven years of income statement analysis, and data analysis based on the results of the analysis of the determinants, the following main conclusions drawn:(1) China's banking interest income and non-interest income determinants are basically the same. This study results show that the deposit loan balance, interest rate, inflation rate, stock index returns, consumption growth, the same sentiment and affect bank deposit-loan ratio of interest income, non-interest income and total income of the seven factors. The expansion of bank spreads on bank profitability can play a positive role. Net rate of inflation on the banks have a significant impact. Stock market development can help improve the bank's profitability and help improve the bank's non-interest income. However, due to move a large number of deposits, interest income of banks will become less. Therefore, the integrated effect of these two effects depends on the hedging results. And the impact of inflation on bank earnings the same level of economic boom will impact on bank earnings. However, capital adequacy, management fees, provision coverage as well as deposit reserve ratio for bank interest income, non-interest income and total income are not significant.(2) Deposits in loan balance, interest rate, inflation rate, stock index returns, consumption growth, the same sentiment as well as deposit and lending rates on the impact of interest income and non-interest income in the same direction.(?)(3) non-interest income on deposits of banks loans, interest rate, inflation rate, stock index returns, consumption growth, the same sentiment as well as deposit and lending rates and other factors are stronger than the sensitivity to changes in interest income, this article will interpret this as a non-interest income of commercial banks in China started late, relatively small. In other words, once the force, and non-interest income of banks will become an important growth engine.The last article for the banking industry healthy and orderly development, for the current problems in China's banking industry put forward appropriate policy recommendations.