The Profit Pattern Of China’s Commercial Banks’ Transformation Research Under The New Norm

For a long time,our country’s commercial banks profit rely mainly on credit spreads,the reasons are as follow. Firstly, it is the high storage and high investment mode of economic growth; secondly, the main body of the our financial market structure is Indirect financing;thirdly,it is the financial repression policy and separated supervision. However, under the new normal, the falling GDP growth, the financial disinter-mediation, the interest rate liberalization and the rise of Internet finance and private Banks,all of these have brought a large pressure on commercial banks management. The bank’s net profit growth rate dropped significantly, and the non-performing loan ratio is rising,so the traditional commercial Banks profit model is unsustainable. Nevertheless, the new normal also brought a lot of opportunities to commercial Banks,for example, the liberalization of mixed management is advantageous to the bank to reshape operation mode,so that the banks can operate a broader business; the area strategy and reform supply side allow commercial Banks to use this opportunity to adjust the asset structure, and the asset quality of ascension.All in all, Under the new normal, a series of factors are driving the transformation of commercial Banks profit model, that is o make the transition to non-interest income by the net spreads income.This article firstly has analyzed the profit pattern of commercial Banks in China now, involving the present situation of the profit model, location, characteristics,causes, etc.;then giving a general overview on the concept of the new normal, and analyzing the opportunities and challenges for Chinese commercial Banks and the driving factors in the transformation of profit model under the economic new normal.In empirical research part, we have selected the 16 listed Banks as the sample,initially study the relationship between net profit and interest net income and intermediate business income; Then analysis the influence factors of different types of banks’ profitability, Finally,we put forward some suggestions on the transformation of the profit pattern of our country commercial bank. The banks should take many measures to maintain the appropriate level of interest spreads, and vigorously develop business to expand non-interest income, and the different types of Banks can make differentiated competition, though these ways, the commercial Banks will nirvana reborn under the new normal.