The Study Of The Decisive Factor In China’s Listed Commercial Banks’Derivative Trading Volume

Since the seventies and eighties of the last century, along with the continuous deepening of the progress of financial liberalization, a growing number of financial development and application of technology, the Western banking sector has slowly absorbed from the traditional deposit and lending business transformation success in favor of doing the banking and non-interest income, in particular the use of derivative financial instruments, set off a wave of business transformation, went on to become an important part of the source of bank profits.In the country, with the deepening of the continuous development of the market process, competition between commercial banks have become more and more intense, on the one hand, the profitability of our business model has changed, the difference between deposit and lending interest alone made profits traditional model is being challenged, the major banks have begun to expand their own fee-based business, which derivative financial instruments play a very important role in derivative financial products have a very big advantage in this regard, on the other hand, derivative financial instruments because of its high leverage, a high degree of complexity of the factors underlying this great danger, and bank-balance-sheet business increased again to increase the difficulty of regulation. Therefore, in order to improve the value of listed banks, to improve the competitiveness of banks, diversified development banks profit model study of derivative financial instruments is necessary to study the determinants of banks’ derivative transactions and has far-reaching significance.Start from the concept and characteristics of derivative financial instruments, risk theory of derivative financial instruments, hedging theory and the uncertain investment income theory. To do a detailed analysis of derivative financial instruments development status of China’s commercial banks, respectively, describe the background of China’s commercial banks in the development of financial derivatives, the constraints of the status quo of China’s commercial banks and financial derivatives, derivative financial instruments as well as the development of China’s commercial banks, China’s commercial risk characteristics and risks of banks’ derivative transactions conduction. Empirical analysis of the determinants that affect China’s commercial bank derivatives trading, for the study of China’s15listed commercial banks, censored model to derivative financial instruments, trading volume as explanatory variables, explanatory variables, respectively, from the assets variable, variables of bank profitability, as well as the company’s financial leverage variable selection, combined with use EXCEL and EVIEWS software to do regression analysis, the final draw.