Empirical Research On Chinese Commercial Banks' Types, Income Structure And Profitability

Commercial banks are the main force of China's financial market. With the deepening of the openness of the banking industry and the steady advance of financial reforms, the banking industry's traditional revenue model and development that mainly rely on interest spreads of deposit and loans has been difficult to continue, and the impact of all kinds of innovative business and intermediate business on profitability gradually stands out. To optimize the income structure is a necessary condition to improve the profitability and economic income level. Different types of commercial banks are difficult in the development foundation, resource advantage, strategic orientation and other aspects, which are reflected in a big difference between income structure and profitability. As to this goal of enhancing profitability, commercial banks should be based on their own situation to carry out the fine management of various types of business and optimization and adjustment of income structure. Based on this, this paper explores the influence of organization type and income structure of commercial banks on profitability in our country and the influence methods.This paper takes 16 listed commercial banks in our country as the research objects to make research from the current situation analysis, normative analysis, empirical analysis and other aspects. The 16 listed commercial banks have public financial data that is available for arrangement and analysis, and both in terms of asset volume and organization type, the data can better represent income structure and profitability performance of China's major commercial banks.Firstly, this paper sorts out the domestic and foreign research results about the relationship between income structure and profitability, and reviews the theories that are related to organization type and business income, income structure, non-interest income and other concepts are discriminated and defined. Secondly, starting from the practice of commercial banks, the paper makes qualitative analysis of the impact of interest income, fee, commission income and investment income on profitability, including direct and indirect economic benefits and cost and potential risk loss arising from related business. Thirdly, the paper sorts out the financial data of 16 listed commercial banks in China, and sets up a panel data model to respectively carry out regression analysis of the whole sample data and classification sample data. The paper takes LX, SXF and TZ as explanatory variables, regards COST, LnAT and GDP as control variables to study the effects of various variables on ROA, and emphatically compares the regression results of the three organization types to summarize the similarities and differences between the general rule and the bank of each group. Finally, according to the results of standard analysis and regression analysis, I draw the conclusions:the influence of income structure of different types of banks on the profitability shows obvious difference; SXF has significant positive impact on profitability, and investment income has no positive effect on profitability; there exists difference in the reverse effect of operating expense ratio on profitability. This paper, from the two perspectives of regulatory authorities and commercial banks, proposes the suggestions of improving income structure and enhancing profitability.