The Research On Profitability Of China’s Small And Medium-sized Commercial Banks By Factorial Analysis Method

In recent years, the small and medium-sized commercial Banks developed rapidly，and has become the indispensable important component of China’s banking system. Theresearch on Profitability, has an important meaning to improve the level of profit, andrealize the sustainable development for the small and medium-sized commercial Banks.This paper used the research results at home and abroad for reference, on the basis ofthe many theories about profit, analyses the factors that influence commercial bank’sprofitability from microcosmic, medium and macro levels to And then, this paper based onthe present situation of the small and medium-sized commercial Banks, analysis its overallearnings situation from environment, basic conditions, profit model and performance ofprofit.In the comprehensive analysis of influence factors and the current situation of profit,this paper constructs the profitability evaluation index system of the small and medium-sized commercial Banks, and testes the level with factor analysis model. The result is thatsmall and medium-sized commercial Banks’ profitability has been improved a lot. Forstudying the reason, this article analyzes the empirical results in the horizontal and verticallevel, and draws the main conclusion that the high-speed ascension of profit for small andmedium-sized commercial Banks, especially the city commercial banks, was the result ofthe macro environment influence. In order to improve the small and medium-sizedcommercial Banks’ profitability, according to conclusions, this paper also puts forward thecountermeasures and proposals.