Research On Sustainable Growth Of Bank Of Communications

The outbreak of the financial crisis in 2008 led to increased attention to how to achieve sustainable growth of commercial banks,which refers to a balanced growth,which is different from sustainable development in the macroeconomic field,and is a financial strategy for microenterprises,that is,to maintain the current financial structure and related financial risks,to increase borrowing based on the proportion of shareholder equity growth,thus supporting a growth model based on a financial perspective of sales growth.As an important part of China’s financial industry,commercial banks play an important role in promoting the smooth operation of China’s economy,but in the new market environment,the competition between banks,especially cross-border competition,the market share of commercial banks is constantly squeezed by non-bank financial institutions,and there are a series of problems in the development process,such as too fast growth rate,too high non-performing loan rate difficult to guarantee the security of capital,so it is necessary to carry out more in-depth research on the sustainable growth of banks,and then achieve sustainable growth of commercial banks.Taking Bank of Communications as an example,this paper makes a brief analysis of the current situation of Bank of Communications in the mature development stage,and based on the current development stage of Bank of Communications,makes a general analysis of the sustainable growth situation of Bank of Communications in the past eight years by using the Higgins model.In view of the limitations of the classical model analysis,the reconstruction model is introduced to further analyze the sustainable growth situation of Bank of Communications.According to the analysis of sustainable growth of Bank of Communications,the T test of paired samples also proves that Bank of Communications has achieved sustainable growth in statistical sense in the past eight years.Therefore,we also need to analyze the sensitivity of the factors affecting the sustainable growth rate based on the reconstruction model.Through sensitivity analysis,it is found that there is a law of increasing returns on scale when each factor changes at the same time.The total asset turnover rate and equity multiplier have the same effect on the sustainable growth rate and the most obvious effect on the sustainable growth rate,followed by the net interest rate on sales and the retained rate of return.Based on these analyses,this paper provides feasible suggestions for the bank of communications to achieve sustainable growth in the future from three financial angles of improving the ability of asset operation,improving profitability and coordinating the balanced development of each financial ratio,and hopes to provide reference for other state-owned banks.