Research On Factors Affecting The High Profitability Of Chinese Banks

In recent years, the view of "the banking profitability more than tobacco and oil industry", even the banking had been put to the forefront. The reform of banking since2003, China banking profitability began to increase constantly, even if in the 2008 financial crisis, the banking profits are still higher than the industry, even higher than that of the oil tobacco and real estate. However, due to the internal and external environment of the banking has changed, it is a general significantly tendency to speeding the reform of interest rate market, over relied on deposit and loan business, the profit model of mainly rely on the spread has become increasingly difficult to continue, the continuous rapid growth of the banking profits will return to normal. This essay selects relevant panel data of 16 listed commercial banks from 2007 to 2014, to elect a representative bank profitability index, on behalf of the profitability of internal factors and external factors index, building a random effects regression model, using related theory, analysis of the relationship between these factors and the profitability of banks.Firstly, this paper introduces the related theories and methods.this paper mainly introduce the industrial organization theory, the asset capital pricing theory and the multiple regression analysis method.Secondly, analyze the condition of the banking high profit our country, it is found that China’s banking belongs to oligopoly industry, it take the price means to obtain the high monopoly profits; define the concept of China’s banking "high profit", through the contrast analysis, respectively, compared with other domestic industries, banking industry in the United States,all the listed companies in Shanghai and Shenzhen, China’s banking "high profit" is peculiar, not universal phenomenon;further elaborates our country banking industry high profit sources.Once again, analyze the main influence factor of high profits in the banking of our country, including internal factors and external factors; analyze the relationship between banking profitability and influence factors, choose profitability index and the internal factors index and the external factors index, and building the model, the model Ftest and Hausman test, the paper applies to the random effects model, the relationship between influence factors and the profitability of banking is obtained through the analysis of the regression results.Finally, according to the results of previous empirical analysis, draw conclusions,based on this proposed countermeasures from two aspects: the first, the banking itself, the second,the external environment, in order to promote the sustainable development of the banking.