Research On The Coordination Between Risks And Earnings Of China Listed Commercial Banks

The ideal state of the commercial banks in China is that the risk and the income are in harmony.However,the complicated external environment and the fierce competition in the industry have put forward higher requirements for the management of the listed commercial banks.The rapid development of Internet finance and large data makes the risk of listed commercial banks increasingly complex and volatile;interest income is the main source of income of China's banking industry,but there is a serious threat to the Listed Commercial Bank earnings that the current gap in the banking industry is gradually reduced.The coordination of risk and benefit of listed commercial banks in China is facing challenges.Therefore,it is extremely important to explore how the commercial banks with low coordination rate in China can learn from the banks with higher coordination and accelerate the transformation of their business models and enhance the coordination of risks and benefits.This paper analyzes the performance and risks of state-owned commercial banks,joint-stock banks and city commercial banks through two dimensions:absolute return index analysis and relative profit index analysis.Then analyzes the risk of commercial banks in China from the aspects of internet finance.As well as the interest rate marketization of the two dimensions of China listed commercial banks the impact of risk.Based on the factor analysis,this paper chooses the coordination degree model to calculate the risk-benefit coordination index and coordination status of commercial banks,and probes into the relationship and gaps between the state-owned commercial banks,the joint-stock banks and the cities banks.In this way,you can find the direction of improvement in the focus of revenue and risk coordination optimization.Among them,when analysis the factor of the benefits of commercial banks,this article innovative use two types of indicators.Most of the previous literature only use profitability indicators to measure the level of commercial bank income.The research shows that the risk and income of the listed commercial banks are highly coordinated.The overall risk and the degree of coordination of the banking industry show an upward trend.However,after 2013,faced with the impact of economic slowdown and interest rate marketization,the degree of coordination of risk and income of listed commercial banks in China has decreased slightly.Compared with large state-owned commercial banks and joint-stock commercial banks,the risk and income of urban commercial banks are more coordinated.The degree of risk and return between joint-stock commercial banks varies greatly,and its degree of coordination is low.This shows the competition among these banks is more intense than the other two types of banks.Among the 16 listed commercial banks in China,Nanjing Bank was the most successful in risk control,while Industrial Bank had been in the leading position in the yield index,and the lowest integrated bank was Huaxia Bank.Huaxia Bank should deepen the transformation of business structure,strengthen light assets operation mode,strengthening the overall budget and cost control.In this way,it can reverse its low degree of coordination of the adverse situation.