Commercial Banking Structure Impact On Profitability

Since 1991 the joint-stock reform of commercial banks, domestic commercial banks to maintain the momentum of rapid development, business has become increasingly rich, which makes the profitability of commercial banks is growing. However, domestic commercial banks, such a high level of profitability is not the means of commercial banks has a strong comprehensive competitiveness, compared with the world-class commercial banks, commercial banks in China still has a large gap. With the advance of market-oriented reform of interest rates, commercial banks’ operating environment will face a huge change, the original oversized deposit interest rate will be gradually reduced. Therefore, the structure of commercial banks, business transformation and upgrading is imperative. Of course, commercial banks, after all, is the market mechanism, to maximize profits and shareholder wealth maximization is the main objective of its business operations, changes in commercial banking structure is bound to the target in order to improve profitability. In view of this, study the relationship between commercial banking structure and profitability between what the business of commercial banks found their profitability has been greatly improved, which is undoubtedly the domestic commercial banks is crucial.Contents of this paper is divided into five parts. The first part is an introduction; elaboration of the research background, purpose and significance, research status, this innovation content. The second part is the concept of bank profitability and metrics; combined needs of this study, in this part of the concept of bank profitability interpretation and evaluation of bank profitability indicators used in the thesis required. The third part is the status quo banking structure and profitability; collecting business structure and profitability of the data nearly 10 years of commercial banks, commercial banks, analyzes the status quo of each business scale, changes in the proportion between the business, while the level of profitability, the profit structure to study the current situation both commercial bank profitability, and demonstrate the profitability of the business structure and the relationship between changes in the data. The fourth part is empirical analysis of the business structure of bank profitability impacts; Selection of sample design variables, linear regression analysis, Granger causality test methods such as the structure and profitability of the business relationship between the inspection. The fifth part is to strengthen the business structure to promote the bank to enhance the profitability of countermeasures and suggestions; based on the business background of commercial banks at this stage, combined conclusions of this study, the corresponding countermeasures and suggestions.Through research, this paper obtained the following conclusions:First, the impact of interest on commercial banks’profitability proportion, just a sample of city commercial banks as a significant positive impact on the overall sample, a sample of state-owned commercial banks and joint-stock commercial bank samples showed a non-significant negative effect, which explains the interest only to enhance the proportion of city commercial banks have a role in promoting improved profitability. Second, the impact of the proportion of intermediary business revenue profitability of commercial banks, city commercial banks is just a sample of the negative impact of the overall sample, a sample of state-owned commercial banks and joint-stock commercial bank samples were significant positive impact, joint-stock commercial banks the highest positive impact. This is also reflected from the side of the city commercial banks are currently in the middle of business development with regard to the existence of weak links. Third, the impact of the size of the assets of commercial banks’profitability are significant positive impact on the highest degree of influence of state-owned commercial banks, city commercial banks, the lowest degree of influence; the impact on assets and liabilities of commercial banks profitability are negative influence where the overall sample, a sample of state-owned commercial banks, joint-stock commercial bank samples are significant; the cost to income ratio on the profitability of commercial banks are significantly negative effect, in which the level of cost management is the most outstanding city commercial banks.