The Western Region City Commercial Bank Profitability And Influence In The West

The city commercial bank is a local joint-stock commercial banks, urban credit cooperatives to form the basis of it is not only strong support for local economic construction and development of SMES, to provide comprehensive financial services for urban residents, but also to some extent alleviate the residents of the employment problem in the process of local economic development plays an extremely important and irreplaceable role. As of the end of2011, there were147city commercial banks. Bank of Beijing, Bank of Nanjing and Bank of Ningbo, three banks have been approved for listing, with strong profitability. However, most of the city commercial banks due to factors such as history, size, management, domestic financial markets, the lack of market competitiveness, profitability is relatively weak, especially in the relatively backward western regions of the level of economic development, the urgent need to improve their profitability to provide financial services to the economic development of the region.This paper introduces the concept of city commercial banks profitability and summary on the study of the profitability of city commercial banks on the basis of comparative analysis of profitability by the profitability of the status quo of city commercial banks in the western region as well as other banks,come to the profitability of city commercial banks in the western region, and the west city commercial banks profitability influencing factors are divided into the bank’s internal and external factors. Bank internal factors constitute the main asset quality, capital position, liquidity, asset size, etc.; external factors including the economic situation of economic activity, inflation, regulatory regime and the entry of foreign banks and other aspects. Factor theory analysis of the profitability of city commercial banks in the western region on the basis of building the index system of the profitability of influencing factors, the use of Factor Analysis and Empirical Analysis of factors affecting the profitability of commercial banks in the cities of the western region. Empirical analysis of factors affect the profitability of commercial banks in the cities of the western region, and the empirical results of the in-depth analysis. Finally, the basic recommendations to improve the profitability of city commercial banks in the western region.