How to improve the profitability of China's commercial banks

1,In summary, the current profitability of China's commercial banks1, interest income still accounts for the main part of the 2. traditional business development mode is difficult to change. 3. the gradual marketization of interest rates trend led to the continuous narrowing of the spread. 2, to improve the way to increase the first is to increase the income, including, specifically, to improve the income of the main business, and the intermediary business income. 1) to improve the size of the assets, which is the basis for improving the profitability. 2) to improve the profitability of the commercial banks. 3) to improve the profitability of the commercial banks in China, which is the basis for improving the profitability of the commercial banks. The first is to increase income, specifically including, improve the main business income, and intermediary business income. In the case of regulation, banks can issue long-term stimulus bonds to improve asset size. 2) Reasonable lending. If the loan size is too large, its profitability increases while the risk increases accordingly. If the size of the loan is small, its profitability will decrease. To determine the appropriate size of the loan, on the one hand, should be combined with the number and quality of the bank's assets, on the other hand, should be combined with China's macroeconomic situation and the central bank's monetary policy. 3) Reasonable loan pricing. At present, the loan pricing of banks in China is generally based on the central bank's pricing with a certain degree of fluctuation. If they want to attract and retain high-quality customers, they can try the customer profit analysis model of pricing. 4) Active asset management. For example, active liquidity gap management and funding gap management. On the premise that the bank can satisfy customers' deposits and loans, the bank will minimize the holding of cash assets. 5) Actively develop intermediary business. At present, China's intermediary business is dominated by low technology. Although it also brings good income for the bank, its contribution to the unit cost is decreasing due to competition. Therefore, banks need to actively develop new types of intermediary business. This also requires banks to have highly qualified staff. Secondly, reduce operating costs and expenses.1) Minimize the cost of deposits. At present, China's commercial bank interest expenses have become its main cost. In this regard, commercial banks can actively broaden the source of funds, including the development of new financial products, the issuance of medium- and long-term bond financing, international financial market financing, etc. 2) minimize the loss of lending and investment. This requires banks to have high-quality personnel with accurate identification of loan risks, and at the same time understand the scale of operation of the financial market to minimize losses.3) Improve efficiency and reduce management costs. China's commercial banks work less efficiently than their foreign counterparts, making China's commercial banks have higher overhead costs.