Research On Sustainable Development Of China’s Commercial Banks Based On Safety, Liquidity And Profitability

Finance is the core of the economy, and the bank is the core of finance, so thedevelopment of the banking not only affects the overall development of the financialindustry, but also affects the effective operation of the economy as a whole. Currently,China’s commercial banks develop in a good way overall, but keeping sustainabledevelopment for a long time still faces many challenges. Though there is not a moresevere financial storm than the last financial crisis in the financial area around theworld, the America’s sovereign debt rating was downgraded, the Greek debt crisis, theEuropean sovereign debt crisis and other local financial turmoil have been intensified.With the performance of the commitment that China’s banking industry would beoverall opening up to the outside world after China’s joining the WTO for five years,and the "Basel III" requirements for banking regulation, the external environment ofChina’s banking system has experienced significant changes, such as, AliPay andBalance, as the representatives of the Internet banking, have been raging like a stormof potential in recent years, and releasing the domestic private capital into bankingindustry, and breaking the previous bank monopoly has been rising gradually. Riskincreasing, regulation strengthening and competition intensifying, China’s commercialbanks are facing an unprecedented test. Therefore, it will make a significantdifference that studying on the connotation of sustainable development of China’scommercial banks, and searching for the balance between China’s Listed CommercialBank’s security capability, liquidity coping capacity, profitability and sustainablegrowth, provide references for China’s commercial banks choosing appropriate andlong-term healthy developing road. This is not only conducive to improve China’slisted commercial banks competitive ability, promote the sustainable development ofcommercial banks, but also inevitable requirement to build a harmonious society andrealize the scientific sustainable development.By analyzing the existing theories of sustainable development, synthesizing theresults of previous studies, combining with the nature of commercial bank as a specialfinancial enterprise and its own management situation, this essay points out that thesustainable development of the commercial banks should focus on safety, liquidityand profitability the three dimensions to measure and study. According to somecertain principles, explanatory variables which are selected from the safety, liquidityand profitability the three dimensions, and the sustainable growth rate of the commercial banks as explained variables, the two of explanatory variables andexplained variables are set as regression models. By using a panel data of China’s16listed commercial banks from2009to2012as sample data, it makes correspondingstatistical description analysis and corresponding inspection to the variables, and thencarries out empirical research after the selection of the random effects model (REM).The empirical findings find out what factors contribute to sustainable growth ofthe commercial banks to what extent, then analyze the problems and improvements inthe development process of the commercial banks, and draw the correspondingconclusions. Finally, according to previous theoretical analyses and empiricalconclusions, it puts forward some relevant policies and recommendations to improvethe sustainable development of business from the safety, liquidity and profitability thethree dimensions.