Research On The Impact Of Financial Derivatives On The Listed Commercial Bank's Business Performance In China

With the continuous changes in the capital market,commercial Banks are faced with the impacts from the increase of competitors and the narrowing of interest margins,so their operating conditions are greatly affected.In order to survive in the wave of financial reform and development,commercial Banks have turned their attention to financial derivatives with the characteristics of hedging and speculation.Although financial derivatives can help commercial Banks to maintain stable profits to a certain extent,the risks they expose can't be ignored.Financial derivatives can improve profitability of enterprises by reducing transaction costs,increasing non-interest income and so on,but encourage speculation and increase risks.This paper takes China's listed commercial Banks as the research object,used relevant data from 2010-2018 to conduct empirical research.Draws the conclusion that while the financial derivatives improves profitability of commercial Banks,it will also increase the risk level faced by commercial Banks.Finally,put forward the following suggestions based on the results of empirical analysis: 1.Improve the external environment.Improve basic financial markets,set up relevant market access conditions,improve the system that has vacancies,implement differentiated supervision,and strengthen international exchanges.2.Improve their own attitude.Return to the essence,improve the system,pay attention to talent training,improve the core competitiveness.