An Empirical Research On Improving The Operating Revenue Of China’s Large Commercial Banks

Since China’s financial market has been fully opened to foreign financial institutions, foreign banks with its unique competitive advantage in management tools,information technology, human resources and reserves, and other aspects continued to challenge the business model of. China’s commercial banks.Learn from the successful experience of foreign commercial banks in the intermediary business development, domestic commercial banks in a strong development of intermediary business in order to improve its operating income increase.However, before the intermediate business of commercial banks at home and abroad on the relationship between operating income research summarized, it is found that the findings of their research can be divided into two aspects, one is the improving of the intermediary business to reduce the risk of commercial banks, and promote the improvement of the bank’s profitability, strengthen the stability of the banking income.The other hand, the study conclusion is just the opposite, that the stability of the intermediate business income less interest income, and increase the volatility of the commercial banks operating income,play a counter-productive of the operating income growth of the commercial banks.So, I think in order to effectively promote the growth of the commercial banks operating income, thereby increasing its competitiveness in the market, to clear if the intermediary net income promote could improve the operating income or not is very necessary.If the empirical results show that the intermediate business income does contribute to the improvement of the intermediary business revenue of China’s large commercial banks, then there should a further study on how to effectively improve the intermediate business income,change the phenomenon of accounted for relatively small in operating income and insufficient level of development. Combination of vision of the obove, this research process is as follows:First, based on the2011financial statements data,comparaed the intermediate business development of China’s large commercial banks with large commercial banks abroad, domestic small and medium-sized commercial banks,identify shortcomings and advantages of business development in the intermediate business development of China’s large commercial banks.Secondly, inspect the significant between intermediate business net income and net interest income to operating income, the test results show that compared with net interest income, the effect on promoting operating income growth is more obvious on the intermediary business revenue。Next, research how to effectively improve the intermediary business revenue。Third, inspection the impact between various components of the intermediate business income and the intermediate business net income, the part is divided into two steps.The first step,inspection the relationship between various components of the intermediate business income and the intermediate business net income with a simple regression model.The empirical results in this section show that the correlation in decreasing order of the relationship is settlement clearing and cash management business, asset custody business, bank card, personal finance and private banking, agency clearing and commissioned, guarantees and commitments, investment banking, corporate wealth management business.The second step,inspection the size of the contribution rate of the net operating income of intermediate business from the various components business income work together by multiple regression model.The test results showed that four various components business has significantly affect on intermediary business net income,the significantly decreasing order is settlement、clearing and cash management business, investment banking, personal finance and private banking, the bank card business,the other business caused the model of severe multicollinearity and be excluded out of model checking process. The combination of two parts of the inspection process can be put forward for commercial banks on how to effectively improve the intermediary business revenue with more targeted, more direct policy advice.Fourth, combined with the conclusions of the front of the intermediary business revenue development,this part give the advise of the development of traditional intermediate business with market penetration strategy recommendations and product development strategy recommends with the development of innovative development of intermediary business,by the SWOT analysis method and Ansoff matrix analysis method.Finally, by the previous analysis and research,considering the level of development of intermediary business for large commercial banks、operating environment、the characteristics of the product or service and the degree of influence between the various components of the intermediate business income and intermediate net operating income,put forward a five-point policy recommendations on how China’s large commercial banks to develop intermediary business,including Raise awareness,clear the importance of intermediary business;Traditional and innovative intermediary business differently developed;Deregulation, support for the intermediate business products or services of species diversification;Regulate competition, and create a favorable environment for the development of intermediary business;Control risk, the common development of deposit and loan business and intermediary business.The innovative point of this course mainly the following aspects:First, the selection of the explanatory variables in the empirical process.Explanatory variables selected in this paper is the intermediate net operating income and net interest income.Excluding the impact of interest expense and intermediate business spending to operating income growth,to more accurately reflect the significant relationship of the intermediary business revenue growth and improvement of operating income.Second,starting from the point of view of the various components of the intermediate business,research on how to improve the intermediary business revenue.According to the empirical results,to propose more targeted, more direct policy advice on how to effectively improve the intermediary business revenue.in my reading range,no literature study on how to improve the intermediary business revenue from this perspective.Due to my limited resources, only able to collect the data of the financial statements after the listing of ICBC.Use these data to empirical test, due to data sample size, the validity of the test results may have some impact.However, it is believed that with the passage of time, the increase of the data samples,deficiencies can be remedied.In addition, due to my limited stock of knowledge and research capabilities,the study in this article may be considered not comprehensive,need to constantly improve in the follow-up study.Also hope that teachers can give valuable advice on this paper’s research.