2012 China Banking Industry Investment analysis reduce financial risks

2012 China Banking Industry Investment Analysis Report Chinese-funded banks seek restructuring cause. Under constant search for financial liberalization in the financial management system changes for the following purposes: first, to reduce financial risks. Participants business by addressing the problems that exist, and re-allocation of resources to reach the market and increase efficiency, reduce non-performing assets make full use of markets and resources, complementary advantages, to achieve a buffer decentralized and efficient amplification to avoid increasing the risk factors that purpose.

2012 China Banking Market Depth Survey Report profit before tax of main commercial banks was 240.9 billion yuan, increased by 55.9 billion yuan than that in 2005, increased 30.2%, net return on total assets and net return on equity of four state-owned joint-stock commercial banks were to 0.9% and 14.9% averagely, intermediary business revenue of main commercial banks accounted for 17.5% and revenue structure changed further. Of which, profit before tax of state-owned commercial banks was 197.49 billion yuan, joint-stock commercial banks fellow closely, was 43.42 billion yuan. The next was policy bank 31.1 billion yuan, rural credit cooperatives and urban commercial banks fellow 18.62 billion yuan and 18.09 billion yuan respectively.

2012 China Banking Industry Development Analysis and Forecast Report Second, improve the core competitiveness. Core competitiveness from the integration and optimization of the core capital, achieve economies of scale and increase industry concentration. Trading on the expansion of the former capital, this depends on the integration of capital. Thirdly, to improve internal control and management, internal management control and management of the efficacy of optimization mainly rely on incentive systems, reform of the property rights system. Banks, particularly the state-owned banks must address a single bank ownership, unclear, owned, realization of a scientific definition of property rights, the separation of ownership and management, and improve various constraints and incentive mechanisms, Optimization of internal control and management to pursue the maximization of profits.

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