The Choice Of Our Country State-owned Commercial Bank Profit Model

The banking sector in a country’s economy plays an important role in today’s increasingly competitive banking world.To adapt to the current macro environment facing and improve their profitability and international competitiveness, our state-owned commercial banks should choose what kind of profit model are critical and pressing issues for not only themselves but also our country.This paper analyzes China’s state-controlled commercial banks exposure to interest rate market, financial disintermediation, and foreign banks and joint-stock banks from competition in three macro-environment, which gave the three sides of the environment in China’s state-owned commercial banks as traditional deposit and loan spreads Lord of the profit model huge challenges, China’s state-owned commercial banks are required to change the existing profit model. Because the ultimate goal of commercial banks is to make a profit, and profit model services for its profitability, therefore some papers using factor analysis of empirical analysis of commercial factors affecting bank profitability, and profitability of domestic and foreign banks were ranked According to the ranking of the state-controlled commercial Bank of China compared with the advanced analysis concludes that China’s state-owned commercial banks to deposit and loan spreads the current profit-based model hindered the development of its profitability, and by improving the procedures fee and commission income and non-interest income accounted for, and increase net interest income growth, non-interest income and fee and commission income growth can increase China’s state-controlled commercial banks profitability. This paper put forward the business assets, liabilities, business, intermediate business and balance-sheet activities of business innovation initiatives and related safeguards.