Analysis Of The Factors Affecting The Profitability Of A-share Rural Commercial Banks

After more than ten years of development and growth,rural commercial banks have become an important part of China's financial system.More and more rural commercial banks are trying to increase capital adequacy and develop long-term,sustainable capital replenishment channels through listing.However,at present,China has entered the deep-water zone of Reform,and Opening,the economy has got into China's New Normal,the industrial structure is facing adjustment and upgrading,and the interest rate is marketized.Such factors have had different impacts on the development of rural commercial banks in China.In the fierce external competition and changing environment,how to maintain high profitability of rural commercial banks becomes crucial.This paper studies the existing research results of domestic and foreign factors affecting the profitability of commercial banks.On the basis of the predecessors,this paper understands the current situation of the operation of rural commercial banks in China,the influencing factors and existing problems of profitability,and hopes to make some supplements to relevant tlheories and practices through in-depth research on listed rural commercial banks..First of all,this paper expounds the connotation of the profitability of commercial banks,and analyzes the internal and external factors that affect its profitability according to the generality and particularity of dhe profitability of rural commercial banks.Secondly,this paper introduces the development history and current situation of A-share listed rural commercial banks.Secondly,according to the relevant theoretical analysis,select the appropriate financial indicators,construct the initial model,and carry out multiple linear regression analysis on the profitability of rural commercial banks;according to the fitting results of the initial model,use the stepwise regression analysis to correct the model,and finally get the correction.Model and analyze the empirical results.The results show that the ratio of total assets to capital adequacy ratio,cost-to-incoime ratio,and govermment shareholding ratio are significantly positively correlated;it is significantly negatively correlated with non-performing loan ratio and local deposit share.Finally,according to the final research results of the paper,the countermeasures are proposed,including five aspects:strengthening the supervision of the non-performing loan ratio,not blindly expanding the scale,improving the capital enrichment ability,increasing the investment in financial innovation,and establishing a benign and interactive development environment.This paper hopes to provide reference for the rural commercial banks in the region to maintain stable development in the fierce financial environment,and also provide reference for the proposed listing of rural commercial banks.