Research On The Factors Affecting The Profitability Of City Commercial Banks And Improvement Measure

Since the establishment of the CBRC,city commercial banks have developed rapidly and have gradually occupied a place in the financial market.However,it still faces problems such as insufficient financial risk management capabilities,lack of capital increase channels,difficulty in meeting the demand for technological innovation,relatively single profit model and "sequelae" of rapid expansion of asset scale,which have caused some banks to declare bankruptcy and a small number of banks to merge.In order to get rid of the current development dilemma and maintain good sustainable development,city commercial banks urgently need to enrich their profit models,optimize their business status,improve management efficiency,take the influencing factors of the profitability of city commercial banks as the starting point,and help city commercial banks to move steadily towards sustainable development through theoretical analysis,empirical testing,case studies and other methods,which is of great research value and significance.Aiming at how to improve the profitability of city commercial banks,this paper intends to use literature research method,comparative analysis method,qualitative and quantitative combination method,and case analysis method to carry out research from four aspects: analysis of profitability research of city commercial banks,construction of regression model based on panel data,empirical analysis and statistical testing,case analysis and countermeasure suggestions.Based on the literature review and the current research status at home and abroad,this paper first explores the influencing factors of the profitability of city commercial banks,summarizes the selected research content and methods,and constructs the overall research idea.Secondly,the concept and indicators of profitability of city commercial banks are elaborated,the current situation and problems are summarized for theoretical analysis,and 12 indicators such as net profit growth rate,fee and commission income growth rate,provision coverage ratio,capital adequacy ratio,non-performing loan ratio,bank asset scale,cost-income ratio,deposit to loan ratio,earnings per share,and GDP growth rate of 25 city commercial banks in China from2015 to 2021 are selected as samples,and Stata is used to analyze panel data to put forward empirical hypotheses and test.Derive the factors and reasons affecting the profitability of city commercial banks;Then,through case analysis,the factors influencing the profitability of listed and unlisted city commercial banks are studied separately,and the differences between the two are found: compared with unlisted,listing has higher financing capacity,substantial equity appreciation,increased profitability,and more standardized corporate governance;Finally,in order to comprehensively improve the profitability of city commercial banks,practical suggestions are put forward from the aspects of overall reasonable control of asset scale,improvement of their own asset quality,construction of cost management system,active development of intermediate business,seeking regional characteristics,pursuing scientific and technological innovation and expanding talent reserves,so as to increase the competitive advantage of the industry and achieve sustainable and high-quality development in the future.