Analysis Of The Impact Of Personal House Mortgage Business On Banks Profitability

This paper takes the current decline in profitability of the banking industry as the research background,and uses personal housing Ioan business as the main influencing factor to launch special exploration.The growing demand for personal housing loans is not a good news for the banking industry.We have conducted detailed exploration and research on this issue from the theoretical perspective to the actual case.The proportion of personal home loans has nothing to do with the decline in the profitability of the banking industry.The extent of their impact is a problem to be solved in this case.The sample for this paper is the data of 13 commercial banks during the nine years from 2008 to 2016.Through the establishment of panel regression models for different types of banks,the quantitative analysis of the factors affecting their profitability.Firstly,the preliminary data descriptions of the most important 13 commercial banks in China are studied.In the descriptive statistical analysis,the state-owned banks have performed well in the state of business operations,and there are obvious differences among the 13 commercial banks.Then we screened the indicators used in the article.We first selected the core indicators related to personal mortgages that affect the profitability of the bank,and then determined the final dimensions based on the results of the clustering and dimensionality reduction of the source data and the specific economic meaning of the indicators.We have obtained nine relevant indicators including the proportion of personal home loansFinally,the corresponding models of the two types of banks are obtained through panel data modeling.From the derived model,there is a positive correlation between the proportion of individual home loans in the state-owned banks and the average return on assets of banks,and there is a negative correlation between the proportion of individual home loans in the joint-stock banks and the average return on assets of banks.Under the conclusion that the proportion of individual home loans is too large to affect the profitability of joint-stock banks,we provide corresponding improvement measures,including the joint-stock commercial banks should take the initiative to circumvent the negative impact of personal mortgage business;various types of banks must pay close attention to the first mortgage Interest rates;banks should actively expand other loan businesses such as personal consumer loans;banks should strictly control non-performing loans to prevent bad debts.