Study On The Profit Structure For The Commercial Banks Of China

As China’s economic growth slowed down, economic structure keeps optimizing, the challenge seems even more difficult and complex, China’s economic development has entered into the phase of" Three superimposed". Together with the influence of interest rate liberalization, the economy system, especially the banking system, which has a close connection with the real economy, also presents the new normal of a slower scale growth, structure tends to diversificated and risk factors appeared. Commercial banks’interest business faces huge challenges, China’s commercial banks began to gradually explore the new profit model and increase the proportion of non-interest income, innovation and structural changes occurs in commercial bank’ profits.At the present situation, this paper first analyze China’s commercial bank’s current overall business conditions, the risk situation, profit structure and profit model related to researches about the commercial bank’s profits and profit model at home and abroad, we found the profit pattern of China’s commercial bank has shifted by just relying on interest income to development of both interest income and non-interest income. In empirical research part, this paper selected quarterly data of 31 commercial Banks which ranges from the first season of 2008 to the third season of 2015 as sample. We built the panel regression model, analyzed the GDP growth rate and the non-interest income influence on commercial bank’s profitability, the results showed that the GDP growth rate of China’s commercial Banks have significant positive influence on profitability, commercial bank is necessary to adjust their own mode of operation and profit pattern according to the development direction of the macroeconomic and the direction of macroeconomic policy adjustments in a timely manner; Intermediate business income accounted for the higher, the profitability of commercial Banks will also increase.To prove that under the background of macro economy, non-interest income like the intermediary business of commercial Banks can help to stabilize the profitability of commercial Banks, and to avoid big changes in earnings, this paper constructs the inequality model, and use the empirical research to prove it, according to the results,the improvement of commercial bank’s non-interest income can effectively improve the stationary of profitability of commercial Banks, and state-owned commercial banks’intermediary business and other non-interest business’s development level is significantly higher than other types of commercial Banks. According to the results of this empirical study, this paper puts forward suggestions as, business model shifted from just notice to scale to improve both scale and banks’ value, profit point shifted from interest income to the intermediary business income, the profit leverage management shifted from generalization to diversification and refinement, intensification barrier shifted from credit risk management to both credit risk and rate management.