The Research About Profit Model Transformation Of China’s Listed Commercial Banks

Bank’s profit model refers to that commercial bank is dominated by which form of income in a certain environment the market.which means the way of commercial banks to get profits.since December 2014,the central banks has cut down the interest rates twice,which marks that our country’s progress of interest marketization has speed up.Since 2008,the outbreak of the financial crisis,the regulator’s regulation to the core capital is more strict.Besides,The continuous improvement of the securities market, financial disintermediation is more and more serious.In this complicated financial background, Banks’ s traditional profit pattern which is denominated by spreads is hard to continue.More and more scholars and Banks are concerned about how to change.Based on a lot of literature’s reading,my paper defined the bank’s profit model as two types: conventional types and unconventional types. According to the data of 16 listed commercial banks’ annual report,we analyzes the the present situation of the two listed commercial Banks profit model,and we know that existing problems in the profit model mainly includes the profit model still is given priority to traditional model, intermediate business income proportion is still low, and the development of intermediary businessis in a subordinate position.The cause of this situation is mainly include institutional and historical factors, the capital market is not developed,so it inhibited the commercial Banks to expand diversified motivation of profit pattern in some extent,High savings and capital construction investment growth, residents’ willingness to spend is not very strong, this kind of pattern has provided the realistic foundation and space to form spreads the leading commercial Banks profit model;the control of Interest rate formation wide spreads Banks lack of innovation consciousness, the middle tube industry developed slowly.Since the strength of the profit model depends on the final performance in profitability,thus in the comparative analysis of the profit model,we build the model to find out the main factor that affects the profitability of Chinese commercial Banks from the perspective of quantitative.We make a rank of the 16 listed commercial banks from the profitability, capital adequacy ratio, liquidity ratio, asset quality.fromthe rank list,no bank can perform very well in all aspects.it means that it is difficult for listed commercial Banks to make a clear ranking since their profit model is slightly different.so we make another rank for commercial banks from the comprehensive profit ability,from the rank,we can see that the merchant bank,industrial and commercial bank,minsheng bank rank the first,second,third.According to the overall situation,we make an analysis of the unique profit model of the bank with strong profit ability:the intermediary business profit model of China merchants bank,the wholesale bank profit model of industrial and commercial bank,retail banking revenue model of the minsheng bank.According to analysis we get some enlightenment and we give some direction of change for the listed commercial Banks.From the traditional business profit model to non-traditional business revenue model,and make the most use of the advantage of talent,make innovation of midde business.At the same time we should learn to innovate traditional business profit model.Finally, in view of the transformation direction we put forward corresponding countermeasures.Not only to start from the system structure to change the traditional profit organization but also to learn to market segments, introduce talents, strengthen professional talent training at the same time,seek to develop in the cooperation.