Abstract:
This research aimed to examine the determinants of the commercial bank
profitability in China.There are five independent variables, one dependent variable
in this research .This research used the observation data ,the purposive in this
study ,which are being examined by descriptive statistical analysis, classical
assumption test, multiple linear regression, and hypothesis testing. In selecting the
observation data, the purposive sampling method and panel data are being used in
this research, where the data were collected from Eastern Fortune Network and
National Data Network. Adopting quantitative research and has 63 units of
observation data from 9samples from 2012– 2018 from Eastern Fortune Network
and National Data Network. By using panel data and spss to quantitatively detect
and analyze this research, the researchers found that the operating expense ratio,
debt to equity ratio and GDP growth ratio have no significant impact on the
income of Chinese commercial banks. Cost income ratio and interest rate have a
significant impact on China's commercial banks profitability. The result reveals
the value of adjusted R-squared among cost in come ratio, operating expense ratio,
debt to equity ratio, GDP growth ratio and interest rate is 48.1%.The study
indicate that commercial banks in China can increase the profitability of
commercial banks by increasing cost income ratio and interest rate.
