Abstract:
Urban commercial banks play a very important role in China's economic development. A sound banking system is crucial to the stable development of the national economy. This paper uses quantitative analysis to study the factors that affect the profitability of China's urban commercial banks, defines the connotation of the profitability of the urban commercial banks, and elaborates the development status of the profitability of the urban commercial banks and its influencing factors. Secondly, using the latest data of six urban commercial banks from 2014 to 2018 as a sample, a multivariate linear regression model was used to conduct an empirical study on the influencing factors of the profitability of China's urban commercial banks. The results show that bank size and net profit margin will have a significant impact on the profitability of Chinese urban commercial banks, while equity to asset and capital adequacy ratios will not have a significant impact on the profitability of Chinese urban commercial banks. On this basis, this paper countermeasures and suggestions are proposed to improve the profitability of China's urban commercial banks.
