Study On The Factors Affecting The Profitability Of Commercial Banks In China

The profitability of commercial banks directly related to the survival and development of its own. The profitability level can not only enhance the credibility of the bank, to increase the bank’s capital strength, attract more customers, but also can enhance the ability of bank itself against the risk, improve the competitiveness of banks. Commercial bank profit model has been the focus of research scholars. Along with the rapid development of Chinese banking, contradictions and problems on the banks’ profit mode of operation and management has become increasingly prominent. Some scholars have begun to realize that the interest gap mode in Chinese commercial banks have become increasingly unable to meet the business change in banking environment. Therefore, to research and analysis on the profitability of banks is has the very strong theoretical and realistic significance for commercial banks to change management ideas, to the development of diversified profit model and cope with the increasingly fierce market competition of banking and finance.Based on the reference to domestic and foreign research results, using the method of combination of qualitative and quantitative analysis, the combination of theoretical and empirical, on the basis of qualitative analysis, this paper applies panel data model to analyze the factors that affect the profitability of China listed ommercial bank, separate factors impact on the profitability of the listed commercial bank from the inner and external aspect.Through the research, the paper get some results:the operating performnence has possitive effect to the efficiency of bank; capital adequacy ratio is possitive related to bank’s profit ability; bank profitability is related to economic cycle and market concentration;.The paper also put forward some corresponding policy recommendations...