Research On The Influence Of Retail Business Transformation Of City Commercial Banks On Their Operating Performance

In the past decades of rapid economic growth,the domestic and foreign economic environment has undergone tremendous changes,and the banking industry has also ushered in a golden period of rapid development.Due to its own uniqueness,city commercial banks are entrusted by the state with the important responsibility of serving the local economy.In recent years,with the fierce competition in the financial industry,the profit space of the banking industry has been gradually reduced,and various types of commercial banks have started large-scale retail business transformation.This paper takes city commercial banks as the research object to explore the impact of retail business transformation on their operating performance.Firstly,this paper expounds the research background and significance,and studies the relationship between retail business and bank performance and the transformation direction of retail business through the literature research status at home and abroad;Secondly,in the second chapter,it introduces the concept of retail business of city commercial banks,further analyzes the operation status of city commercial banks with data and points out their development bottlenecks,and then analyzes the transformation motivation and transformation status of city commercial banks.The analysis results show that the proportion of retail deposits,retail loans and retail wealth management of city commercial banks has been increasing steadily in recent years,and the proportion of retail profits has also increased significantly,which to some extent indicates that city commercial banks are gradually transforming their retail business;The third chapter of this paper clarifies the mechanism of retail business transformation affecting commercial banks’ operating performance through theoretical analysis,which provides a theoretical basis for subsequent empirical research.The fourth chapter introduces the data sources and empirical analysis results of this paper.This paper uses the data of China’s urban commercial banks from 2011 to 2020,and uses factor analysis to construct performance indicators as the explanatory variables.Retail transformation is the core explanatory variable in this paper,including transformation depth and transformation breadth.In this paper,the retail net interest margin index(RENIM)and retail business share index(PROB)are used to reflect the depth of transformation,and the retail DIV index(REDIV)is used to reflect the breadth of transformation.Other control variables include micro-level and macro-level related variables.Using the above indicators for empirical analysis,the results show that both the breadth and depth of the transformation have a significant role in promoting the operating performance of city commercial banks.On this basis,we further test the city commercial banks in groups.The results show that the transformation of listed banks relative to unlisted banks and eastern city commercial banks relative to the retail breadth in the central and western regions has a more significant impact on performance,while unlisted banks and central and western city commercial banks are more biased towards the net interest margin of retail loans.Finally,based on the results of the full-text analysis,the paper puts forward policy suggestions on the transformation direction of retail business of urban commercial banks in China from the aspects of product innovation,personnel training measures,performance assessment strategies,risk management,etc.This paper aims to explore the impact of retail business transformation on city commercial banks through empirical analysis,and provide reference for the direction of retail business transformation of city commercial banks.