Analysis on the Influencing Factors of Profitability in China Minsheng Bank's

Abstract

With the instant development of China's market economy towards globalization, domestic banking industry still exposes a large gap in profitability under the participation and competition of foreign banks. In addition, attributes to the advancement of internet and developments of informational technology, Internet finance has gradually become a part of our lives. People will no longer only counting on tangible banking services, and more profitable and more convenient Yu’e Bao, Wealth Management, etc. are used. People choose. These factors have a great impact on Chinese commercial banks. If commercial banks want to enhance their core competitiveness, they must consider their profitability. Profitability is not only a key indicator to enhance core competitiveness, but also the only fundamental rules of commercial banks in China. The deposit in traditional ways and loaning business has less and less room for profit. In order to achieve long-term stable development of commercial banks, it is necessary to determine the factors that affect the profitability, so as to find solutions to improve the profitability of commercial banks. Based on theoretical research, this research extracts the comprehensive profitability index, asset quality index, capital adequacy index, liquidity index, operational efficiency index and GDP growth rate index of Minsheng Bank from 2011 to 2020 for empirical analysis, using multiple regression method, the conclusion is that there is a negative correlation between Minsheng Bank and non-performing loan ratio, capital adequacy ratio, loan to deposit ratio and cost income, while there is a positive correlation between the external factor GDP growth rate and the profitability of Minsheng Bank.