The Study On The Impacts Of Factors Of Our Listed Commercial Banks’ Profitability

In recent years the profitability of commercial banks research has been the core problem of bank management in banking industry and the academic circles. The improvement of listed banks’profitability can help guarantee banks continue progressing, and it’s also good for the benefit of shareholders. Since1991China’s first listed bank, Shenzhen Development Bank to set up, there have been15listed banks in China.And they try their best for the management with continuous efforts and explore.Since1994, our commercial banks have carried out systematic management mode reform state-owned banks, joint-stock commercial banks and city banks are developing rapidly showing a new vitality. And when our banking system reform, China’s listed banks, especially state-owned commercial banks throw too much to bear the burden of history. They bear much political business, at the same time, asset quality is not high, and the level of management is low. Business and product innovation capability is also not high. These problems will profoundly affect the profitability of listed banks in our country, which, has restricted the sustainable development of listed banks. While in recent years there has been constant improvement in the banking sector, in highly competitive days, how to improve the listed bank profitability is still a question we need to continuously study.From the theoretical significance of the study, along with the economic globalization and the deepening of fusion, our listed banks are facing greater global challenge. So banks to take more advanced and effective management methods to guide practice with its practical operation. Our study in commercial bank profitability started late. In1990we begins studying for a relatively systematic study commercial banks’profitability, and then scholars in succession with different perspectives and approaches start to research in this popular field. In order to enrich the relevant theory, making this task more practical, timeliness, systemic, this paper make more nuanced discussion along the predecessors studies on this topic, hoping to bring some inspiration and supplement for the study of these topics.From the realistic significance of the study, with China’s current capital market opening degree deepen ceaselessly, the influx of foreign banks to China’s banking industry bring more competition and challenge for us. Listed banks not only live for the profit competition, at the same time, they also fight with foreign banks for the core of the management level and technical application. This situation requires the listed commercial banks of our country must strive to improve the management level and business performance, further enhance profitability and competitiveness, therefore this research has important realistic significance.Based on China’s listed commercial banks’level of profitability and profit status analysis, this paper elaborated the listed banks profitability and the relative advantages and disadvantages and the influencing factors. This study makes a discussion on the internal factors of profitability which discusses the net interest income factor, non interest income factors, operating expenses, assets quality factors and provision factors, making a extremely growth effect on listed banks profitability. And derived factors on the level of profitability are also involved. The author collected the development of China’s banking industry relevant data in recent years to verify the relevant theory and conclusion. Finally put forward to feasible suggestions for improving the listed bank’s profitability.The structure arrangement in this paper is divided into the following four chapters:The first chapter is the introduction. In this part the research background, the significance of the research, the literature review, the research method and the framework are introduced.The second chapter is the theoretical analysis of the influence factors about China’s listed banks’profitability. The analysis focuses on the profitability of the internal influencing factors, combined with our listed bank’s development situation in recent years. Discuss about the advantages and disadvantages of each bank’s development of profitability. The analysis of vision extends to the effect of derived factors on listed bank profitability. And finally make a conclusion.The third chapter is the empirical analysis of the influencing factors with China’s listed banks’profitability. Through the above theoretical analysis, the author selects reliable factors as variables, using our country various listed banks’relevant financial data for the empirical analysis from2009to2011on influential factors and derived factors related.The fourth chapter is the countermeasures of improving the listed banks’profitability.The research method of the thesis is as follows:firstly the author uses system analysis method to analyze the profitability of each influence factor and their derived factors. In the analysis of the process this paper combines normative research and empirical analysis. After the analysis of influential factors and derived factors, the author collects the latest financial data for the test of theoretical results. And between the listed banks we use the comparative study method.This research has two new points of view:first is a derived factor analysis is introduced in the listed banks profitability analysis. The angle analysis of predecessors is usually only the first layer of profitability analysis of influencing factors, and to collect the relevant data for validation. The innovation of this paper is to research the derived factors related, with a more systematic analysis of the bank profit level. The second point is directly inserting of our listed commercial banks’present situation analysis in the analysis of influencing factors and the derived factors, enriching the original theory.