Research Of Transformation Of Profit Model Of China’s Small And Medium Listed Shareholding Commercial Banks

Recently,with the domestic and international financial market fluctuated largely, China’s economic development also entered the state of three superimposed,developed weakly,and ecnomic structure changed greatly.As the indispensable financing agency in the financial market, China’s Listed Shareholding Commercial Banks are affected severely. The traditional profit model which give priority to non-interest income has been unable to continue. This paper selected eight listed joint-stock commercial banks as sample to study,including Huaxia banks, Shanghai pudong development banks, everbright banks, minsheng banks, pingan banks, citic banks, industrial banks and China merchants bank.Presently, the situation of the listed joint-stock commercial banks in China is complex and diverse.Firstly, the economic fluctuation have an effect on the enterprise greatly, many enterprises expansed slowly, reduced scales, or even bankrupted, which makes the banks facing the increased credit risk sharply, and more and more difficult credit assets quality. Secondly, the marketization of interest rate process accelerated gradually.since 2005,the central bank cut interest rates timely, the loan spreads narrowed, and the bank credit spreads benefits were under threats. Thirdly, in order to prevent the adverse factors of moral risk and operational risk, China banking regulatory commission and the securities and futures commission regulatory department has also intensified its efforts on banking supervision, and the regulation are heavily in the intermediary business and financial derivatives market, it is difficult to find new profit growth point. Fourthly, with the rapid development of financial Internet, the furthered financial disintermediation exacerbated the competition for customers and markets between non-financial institutions and banks, and the development get into a difficult position. Fifthly, the competition of banks not only increasingly fierced market competition of the listed joint-stock commercial banks in China,but also had the edge on the listed joint-stock commercial banks in China in risk tolerance, debt paying ability, operation ability, profit ability, growth ability, etc, compared with the state-owned big four banks.Faced with such serious situation, the disadvantages of traditional profit model of listed joint-stock commercial banks in China have been increasingly exposed. Firstly, with spreads narrowed and the bank’s credit interest income reduced gradually,this traditional profit model which give priority to non-interest income has been unable to continue is not sustainable;Secondly, the credit risk is increasingly exposed, non-performing loan ratio rised year by year,and the bank’s risk management system is not sound; Thirdly,there are most traditional banks which has less variety of products,the singled the profit model, and meeting the needs of the customer diversification unably; Fourthly,in order to gain more customers,the listed joint-stock commercial Banks in China set up branches everywhere unceasingly, expanded blindly, causing the waste of resources and costs.However, these were not do the in-depth customer mining and market development is not sufficient; Fifthly, various business and products of listed joint-stock commercial bank’s are mostly the same, did not have differences and particularities, and did not reflect their different characteristics; Sixthly, the technology content of products was low, the investment in science and technology was little, the innovation were lacked.Because of the listed joint-stock commercial banks in China faced the problems at home and abroad, the profit model transformation has become the only way for the continued development. From the macroscopic aspect, listed joint-stock commercial banks in China still adopt the profit pattern of non-interest income in a short period of time, and seize the opportunities brought by the new normal economy in our country, transformed the profit pattern gradually. From microscopic aspect, listed joint-stock commercial banks in China should speed up the pace of financial innovation, develop characteristic development strategies, and intensify the investment in science and technology, improve the talent selection standards, establish a capital intensive business development model,and the most important thing is to establish a rigorous risk air defense capability. From the aspects of market, speeding up the cultivation of perfecting our country’s capital market systems should be done, and realized our country commercial bank’s transition from separated operation to mixed operation. From the aspects of law,it should speed up the establishment of the legal system of financial market in our country, and set clear rules and regulations of the financial derivatives and options on futures. From the aspects of regulation, in order to build a good space for development.it needed regulatory departments cooperate with each other, had a clear division of labor and strict regulation.