Analysis On Profitability Of Joint-stock Commercial Banks In China And Its Influencing Factors

Commercial Banks as a non-profit organization in the financial industry,only to ensure certain profit margins,to achieve long-term development and progress,so commercial Banks in the process of development,make sure a certain profit margins,which can improve the bank’s capital,so as to attract more investors,to avoid the possible risk,commercial Banks encounter Improve the stability of commercial banks.That is to say,by increasing the profit of commercial banks,to protect the interests of depositors,to achieve the benign development of banks.The age of the Internet’s development and progress of commercial Banks with a bigger challenge,innovation of financial means to make the development of commercial Banks has met some challenges,profits under certain restrictions,which makes the commercial bank in order to improve the competitive level,must be effectively improve profitability,adopt effective methods to increase profits,However,compared with state-owned banks,joint-stock commercial banks are very weak in replenishing capital and have high financing costs.Therefore,it is of great theoretical and practical significance to discuss the profitability of joint-stock commercial banks and its influencing factors.This article through the analysis of the development of commercial Banks to research its profitability,through the study of thesis introduces domestic and foreign,summarize development road of commercial Banks,profit model and profit ability,using the paper work to process of quantitative analysis,it can more clear analysis of the profitability of commercial Banks,Thus summed up the effective conclusion to analyze the development trend and direction of commercial banks.Through the theoretical analysis of profitability,as a solid theoretical basis,from two aspects of the bank’s own characteristics and external environment,according to the specific situation of China’s joint-stock commercial banks,select relevant indicators to build an empirical index system.Then,the panel data model is established by econometrics method,and the financial indicators of nine listed joint-stock commercial banks in China from 2010 to 2019 are empirically analyzed,and the impact of various factors on the profitability of Chinese commercial banks is empirically analyzed.The empirical results show that the increase of asset scale,cash ratio,capital adequacy ratio and non-interest income ratio can significantly improve the profitability of joint-stock commercial banks.The reduction of cost to income ratio,non-performing loan ratio,financial derivatives and third-party payment scale can significantly improve the profitability of joint-stock commercial banks.GDP growth rate does not pass the significance test and cannot have a positive impact on the profitability of joint-stock commercial banks.On the basis of the empirical conclusions,from raising capital strength,the reasonable control of assets,strengthen the cost management,strengthening business innovation,improve risk management,to adapt to the macroeconomic situation,make full use of the Internet financial and clear market position eight aspects discusses how to through effective financial means to enhance the profitability of commercial Banks in China.