An Investigation Of Influencing Factors Of Commercial Banks’Saving Deposits Increment In China

The core of modern economy is finance, which infiltrates in national economy in all fields, all levels, and all economic entities. It is finance that connects the demanders and suppliers of capital. Therefore, an effective transfer from savings to investments can be easily accomplished. The development of financial system is so vital that it has become the core of economical development. The world has recognized that only a stable, healthy and prosperous financial system can guarantee a stable economic development. Banking industry, as one of the most important parts in financial system, owns a leading position in national economy.Banking industry in China is now facing a great challenge at home and abroad. In order to own an undefeatable stand in such a competitive market, and considering deposits is the most important source of capital, the bankers needs to achieve more to gain competitive abilities. Today, China’s banking industry is encountering a fierce challenge. First, from December11,2006, in order to complying with the promise that China had made while entering WTO, our country will completely cancel the field limitations and customers limitation of foreign commercial banks’RMB business in China. It means that China’s banking industry has been open entirely. Therefore, our market share has been threatened by foreign commercial banks. Moreover, from2008, financial crisis in US has influenced the whole world, and also impacts China’s overseas market demand, exportation of goods, and foreign trade enterprises. Banking industry in China is also under the influence as well. Besides, the government’s400billion economic stimulus package makes a huge quantity of local governments’debts in banking system, which brings great influence to the banking industry in China. How to deal with the bad loans is now regarded as the most important issue in future.Considering the deposits are the main source of capital, and also the basis of commercial banks’asset and intermediate business, most of the bankers regard it as the foundation of all banking business. Saving deposits are formed by individuals depositing their own assets in commercial banks. For commercial banks, the saving deposits has lots of advantages, such as its large quantity, fast growth, more stability, lower cost, so the bankers spend a lot of resources to compete in the savings markets.The main point of this thesis is lying on the influencing factors of the increment of saving deposits in commercial banks. Based on the theoretical analysis, we discuss several different influential factors, such as the quantity of outlets, the quality of financial services, commission rate, and their mechanism to the outcome. Based on the objective of this thesis, there are four parts that need to be discussed:Part one is the introduction. It includes the research background and meaning of investigation, the literature review of related researches at home and abroad, the research methods and the basic structure of the thesis.Part two is for the theoretical analysis. It analyzes several characters of commercial banks’deposits. The first one is it has an increasing quantity in deposits. The second one is its stability. The third one is it has a lower interest cost. There are both internal and external factors that are influencing banks’deposits. The external factors are mainly family income, expectation, interest rate, inflation, and other investment measures. Internal factors are mainly banks’outlets, banks’ service level and their commission rate. Part two detailedly introduces several basic hypothesis of the increment models of banks’ saving deposits. The first one is that besides the differences in banks’ outlets, banks’service level and their commission rate, most of the banks have the same operating efficiency, and they all have an even distribution channels at home. The second one is the stable relationship between customers and saving deposits. In the end, there are design of model variables and model structure.Part three is the empirical study. First of all, there are some sample data from selection and adjustment of banks’annual reports. According to the sample data of twelve banks from2008to2010, I did the multiple regression analysis. Then comes the conclusion:in China, newly increment of deposits impact the increasement of banks’saving deposits; the banks’outlets have a vital influence of deposits; and the service of individual business and other business costs also influence saving deposits. However, commission fees have no influence of the saving deposits.Part four is conclusion. It is analysis and conclusion of the result of empirical study. And it also demonstrates the innovation of the thesis from the perspective of commercial banks. According to theoretical analysis and empirical study, it finds the main factors that influencing the increasing of saving deposits. Besides, it also provides some theoretical supports for China’s commercial banks’ deposits business. What is lacking is the amount and veracity of the data. At last, there is the expectation of further study of saving deposits.