Case Analysis on the Profit Model of Commercial Bank A in China
|School||Huazhong University of Science and Technology|
|Keywords||Commercial Banks Management mode transition Profit model|
With golden decade of rapid development, China banking industry has obtained theproud achievement. Contrast to the slowdown trend of world economic, China bankingindustry has got sustainable growth both in scale and profit, which enhance the strength ofoverall banking industry. However, China’s commercial bank is facing the great challengesof internationalization, interest rates liberalization with the financial reform’s deepening.Meanwhile, homogeneity competition, financial disintermediation in the marketenvironment also bring severe challenges to commercial banks. With the trend of thereduction of spread income between deposits and loans, it is difficult to get sustainabledevelopment which only relies on the traditional pattern of high capital consumption, thusthe management mode transition of commercial bank is imperative. As a problem that requiresimmediate solution, profit model is related to commercial banks to survive in the fiercecompetition environment and realize the maximization value, which has significant both intheoretical and practical.A bank, founded in1988, is one of the first joint-stock commercial banks in China.With more than20years development, A bank has formed the unique corecompetitiveness, that is the stronger profitability, risk control and product innovationability. As the first commercial banks which has made the management and profit modeltransition, the A bank’s profit model has a strong reference significance to othercommercial banks. In this paper, we take A bank as an example to study the constructionand transition problems of commercial banks’ profit model. First, we introduced thedeepen financial reform and market competition intensifies, which is the basic backgroundof our research. Secondly, we introduced the theory of commercial banks profit model,discusses the scientific connotation of commercial bank profit model system. Again, wecombine relevant theories of economics, finance, management, use normative analysis, comparative analysis, empirical analysis, systems analysis, key analysis method, potterfive model analysis tools to study the current macro-economic environment of China’sbanking sector and industry competition environment, commercial banks opportunitiesand challenges. Finally, we take A bank as an example to conclude the factors whichinfluence the profit model and strategy to construction and transformation of profitmodel.