The Influence Factors Of The Return Of China’s Commercial Bank RMB Financial Products

With the continuous expansion and development of banking,traditional business of the commercial banks is faced with large extrusion and the profit space is gradually reducing.In order to cope with the increasingly fierce market competition and enhance their competitive ability,banks must actively broaden their scope of business and look for other sources of profits.In this background,financial product market appeared.At present,China’s financial products market is in the initial stage.The research on the influencing factors of the financial products return has great practical significance for both commercial banks and investors.In the past,the study about the influencing factors of financial product return is mainly from the macroscopic aspect and microcosmic aspect.The main chosen indicators include interest rate, money supply, inflation rate, term, linked assets, investment direction and subscription amount.The author attempts to analyze the influencing factor of the RMB financial products of commercial banks from the own assets condition,profitability and capital needs of the issue bank. We select cost income ratio, the rate of bad loans and loan to deposit ratio of the commercial banks as independent variables.This paper selects all financial products issued by 12 listed banks from January 2009 to December2013 as the research sample.Through the empirical research,we can conclude:the cost income ratio of the commercial bank has significantly negative correlation with the return of financial products, the rate of bad loans has significantly positive correlation with the return of financial products, the correlation between loan to deposit ratio and the financial product yield is not significant.Accordingly, the author gives some suggestions:for the investors,when choosing financial products, they should pay more attention to the issuing bank’s own condition and they should invest more rationally;for the issuance bank of financial products,they should price more reasonably by considering the situation of financial products;for the regulators, when carrying on the supervision of financial products market, they should put the own situation of commercial banks into the scope of supervision to prevent commercial banks from getting deposits through issuing the financial products having high interest rates and enlarging the whole financial market risk.