Research On The Problem Of The Wholesale Financing And Profitability Of The Bank Of Communications

As a bridge for financing,commercial banks have become increasingly important.With the continuous liberalization of financial regulation,the pace of interest rate liberalization is accelerating,and the competition in banking industry is becoming increasingly fierce.In September 2017 Moodie down on the bank’s rating report,most banks rely on wholesale financing phenomenon is disclosed,in the current interest rate environment is complicated and the cost is rising in the background,how to control the proportion of wholesale funding at a reasonable level,is every manager should be considered.This article based on the theory of asset liability management,starting from the perspective of report analysis,combined with empirical analysis,discusses the existing problems in the proportion of wholesale financing of modern commercial banks and profitability.Firstly,the theoretical basis of the research on asset and liability management of commercial banks is the theory of asset and liability management;secondly,under the framework of China’s existing core index system for risk supervision of commercial banks,the annual report data of five major state-owned banks have been selected for nearly five years.The wholesale financing evaluation system is to compare the proportion of their wholesale financing with the profitability horizontally,find the industry average,and construct an industry average index system.Based on this,a detailed analysis of the Bank of Communications’ s financial statements for the past five years will be conducted.The profitability of the Bank of Communications was gradually lower than that of the year-end,and the profitability gradually weakened.Next,this paper uses the ordinary least squares method to carry out a regression analysis of the ratio of the Bank’s interbank debt liability and the asset’s profit rate,in order to verify the high ratio of wholesale financing in the Bank of Communications.Whether there is a direct relationship with weaker profitability,the empirical results show that the increase in the proportion of wholesale financing will have a significant negative impact on profitability after two quarters of time,corroborating Moody’s view;Finally,based on the analysis of financial statements It is proposed that the Bank of Communications should actively broaden its active liability channels and change Their income structure,management strategies to create value by controlling risk,and at the end of the paper made a general research prospects.