Research On The Influence Produced By Financial Products Of Commercial Banks To The Business Performance

Commercial banks are now in the phase of transition.According to market demand and their own situation,it is essential to improve the risk management standards,enrich the tools of bank service and look for new opportunities of profit growth further.As the growth rate of the financial products of our country commercial bank far exceeds that of the same period deposits and loans,China's commercial bank financial products balance increased to 2.628 billion yuan On June 30,2016.The increasing financial products have become important commercial bank financial tools.Hence,exploring the impact of commercial banking financial products on bank performance is of great theoretical and practical significance to promote the development of bank financial products.The remainder of this paper is structured as follows.Firstly,the background will be described briefly.Related notion and influencing mechanism will be provided in the second part.Financial products and performance of bank will be classified when we analyze current situation.In the verification part,the method of factor analysis is first used to calculate the values of 12 selected indicators of debt to assets ratio,current ratio,capital adequacy ratio,increase rate of main business revenue and others for business performance.The obtained business performance values will be regarded as the explained variables used in the panel date regression model.To study the influencing factor of business performance,there are three factors,such as income ratio,structure of type returns and term structure can be used as explained variables in panel date regression model.From the experiments,some conclusion can be obtained,which can be list as follows: for the financial products,the higher the ratio between returns of financial products to fee(or commissions)is,the better.To choose the type returns of products on sale,the quantity of non-capital preservation products should be increased,and the proportion is higher and bank performance is better.That is to say that bank performance will decline when the radio of capital preservation products is too high.Term type of financial products should be enriched.The medium-short-term products have significant positive effect on bank performance,while the medium-term products have significant negative effect.Compared with importing model with only one type,whendifferent term type of financial products are combined with some certain principles,most of indicators do not change obviously.But when non-capital preservation and medium-short-term products are on sale,bank performance is dramatically improved.According to the empirical results achieved in my work and the current situation,I propose some suggestions: According to the fact that the ratio of returns of financial product has the positive effect on bank performance,it is needed to develop a financial service platform conforming to management transformation.In this way,this platform can provide more value-added products and service.The bank should standardize management behavior and design more abundant financial products because of the opposite effects of non-capital preservation products and capital preservation products on business performance.To avoid the behavior of “deposit at point”,short-term finance products should be reduced and the relevant law about financial services should be improved.Finally,more work will to be done to further strengthen customer protection mechanism and promote the correct viewpoints on investment and financial management.