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Comparative Study On Sustainable Profitability Of Chinese And Foreign Commercial Banks

Posted on:2015-08-13Degree:MasterType:Thesis
Country:ChinaCandidate:C ZhangFull Text:PDF
GTID:2309330434955177Subject:English Language and Literature
Abstract/Summary:PDF Full Text Request
In recent years, China’s commercial banks have maintained sustained high levelof profit growth. We have to think about the very state of rapid growth, whether China’scommercial bank existing profit model and profitability are sustainable or not andwhether there are hidden risks behind it. So the study on commercial banks’ existingprofit model and sustainable profitability has very important practical significance.Firstly, the author defined the sustainable profitability of commercial banks, andthen analyzed it from the economies of scale theory, the theory of the banking crisis andfinancial innovation theory perspectives. Next, the author discussed the profit model ofChina’s commercial banks in detail and by comparing with the international advancedbanks; she found that it has many problems.In the empirical research, this paper selected19domestic and foreign commercialbanks’ financial data to conduct factor analysis through SPSS16.0. The conclusionsshowed: there is a large gap between China’s commercial banks and foreign banks interms of sustainable profitability. This gap is comprehensive, not only in the absolutelevel of profitability, but also reflected in the earnings trend. And capital security, assetquality and income structure are the main factors of sustainable profitability, whichexplains we should focus on the basis of capital and assets and optimizing revenuestructure to enhance the sustainable profitability of commercial banks. Finally, therelevant policy recommendations are given to improve the sustainable profitability ofcommercial banks: optimizing the revenue structure, developing intermediary bankbusiness; strengthening risk management; improving the quality of bank assets andcapital security; making financial innovation to meet customer needs.
Keywords/Search Tags:commercial banks, profit model, sustainable profitability, comparativestudy
PDF Full Text Request
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