The Profitable Research Of City Commercial Banks

The city commercial banks are local joint-stock commercial banks,which established on the basis of some urban credit cooperatives and approved by the State Council. As China’s banking industry "third tier", after more than ten years of development, city commercial banks have gradually grown into a major force in China’s banking industry, for our country’s financial system reform and economic development plays underestimated effect. Since its inception, city commercial banks are trying to explore the road for their own development, and continuously improve their profitability, has made great achievements for China’s financial and economic development made a significant contribution. However, with the deepening of China’s financial system, market-oriented interest rate reform progresses, the main source of profit for traditional bank are decreasing; With the end of banking transition period and the growing of domestic banks,the profit margins of city commercial banks are further squeezed; And starting in2007, the domestic banks begin competing with the foreign banks added to the financial crisis has not yet dispersed, city commercial banks are facing pressure can be described as overwhelmed. If the city commercial banks want to survive in the traditional four banks、joint-stock commercial banks、rural credit cooperatives and postal savings, profitability is the foundation and source which support the continuous development, city commercial banks only depend on their strong profitability to survive in intense competition of market place.This article in accordance with the logical thinking of "introduce the question—analyse the question—solve the question" to research.First, this article analyzed and summed up the city commercial banks’ profitability and current situation of research at home and abroad. Secondly, this article analyzed the current development of city commercial banks that the city commercial banks’profitability should be inmproved immediately. Thirdly, in the section of case analysis, this article make use of "DuPont financial analysis system" to analyse the Chengdu Bank’s evaluation system of profitability,at last this article selected Bank of Chengdu, Bank of Chongqing,Bank of Fudian,Bank of Guangxibeibuwan,Bank of Huishang,Bank of Hankou,Bank of Luoyang,Bank of Hangzhou,Bank of Shanghai,Bank of Ningbo,Bank of Nanjing,Bank of Beijing as samples, analyzed the advantages and weaknesses of Chengdu Bank’s profitability from net interest income、net fee income、other net operating income and Income not from main business which compared with other city commercial banks, pointed out city commercial banks’ currently profitability problems. Finally, this article put forward countermeasures and suggestions based on commercial banks’ own point of view and perspective of government policy environment.This article is divided into six parts:Chapter one Introduction. Introduces the research background, purpose and significance, research status and research methods at home and abroad.Chapter two The literature review of city commercial banks profitability.Chapter three Development of city commercial banks. Including urban commercial banks connotation, history and development status.Chapter four The evaluation and analysis of city commercial banks profitability.Chapter five The suggestions to promote the profitability of city commercial banks.Chapter six The deficiencies and future research prospects.