1 / 20

—— Based on comparisons of Bank of China and Chongqing Rural Commercial Bank

Analysis on Size Effect to Commercial Banks Operation. —— Based on comparisons of Bank of China and Chongqing Rural Commercial Bank. VS. Asset structure of BOC. Asset structure of CRC. Total assets. 39.8%. 55.5%. >. ≈. 18.85%. 19.85%. investment securities.

wirt
Download Presentation

—— Based on comparisons of Bank of China and Chongqing Rural Commercial Bank

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Analysis on Size Effect to Commercial Banks Operation ——Based on comparisons of Bank of China and Chongqing Rural Commercial Bank

  2. VS

  3. Asset structure of BOC

  4. Asset structure of CRC

  5. Total assets 39.8% 55.5% > ≈ 18.85% 19.85% investment securities In conclusion, the net loans occupy a large proportion of asserts in banks of big size, however, the banks of small banks focus on diversifying assets not only the loans.

  6. Liabilities structure BOC CRC

  7. In conclusion, Customer deposits are the main source of the liabilities of banks no matter big banks or small banks. However, the small banks make good use of repurchase agreements to satisfy the liquidity of short term fund. We must realize that the rate of repurchase agreement is lower than the rate of due to banks in the same period, so the small bank can fiance with low cost.

  8. Income structure BOC CRC 128572 4228.97 30.4 times Chinese mainland Hong Kong Macau Taiwan other countries.

  9. The average net interest income amounts to RMB 226 330 million which accounts for 70% of the operating income of BOC. The average net interest income amounts to RMB 10366.33 million which accounts for 96% of the operating income of CRC. the big banks make good use of big market to accelerate product innovation and further expand market , which continuously promote the diversification of income structure, perfect risk management and strictly control cost, leading to a continuous increase in the bank’ s profitability.

  10. Loans structure BOC CRC 146682.93 4409842 30times Since the big banks can satisfy the big demand of the borrower, so many corporations want to borrow money from them.

  11. Corporations are the main targets of bank’ s loans no matter big banks or small banks. Medium and long term loans account for nearly 70% of BOC’ s loans and account for 84.68% of corporate loans of CRC’ s loans, which further explain that most of the loans are in the long term.

  12. Securities structure prefer to satisfy the short-term liquidity and avoid bond devaluation loss. securities available for sale prefer investing debt securities to earn continued income. debt securities classified as receivables

  13. Deposits structure 52.11% Corporate deposits Retail deposits 72.41%

  14. ROA BOC increase from 2008 to 2012 The big banks’ ROA have a bigger promotion space, which can be promoted to develop more intermediary business and offer small loans. Certainly, it must be on the premise of low risk and sufficient liquidity. CRC increase from 2009 to 2012 and is even beyond the data of BOA since 2011

  15. ROE Though the return for the stockholders increases, the risk caused by liabilities decreased. So we can conclude that banks all pay attention on EM but small banks prefer lower EM than big banks to reduce the risk. increase from 2008 to 2010 and little decrease from 2010 to 2012 BOC decrease from 2008 to 2010 and increase from 2010 to 2012 CRC

  16. NIM With the development of liberalization of the interest rate, the banks face more fierce competition, which will bring the new change to the NIM no matter big banks or small banks. BOC increase from 2009 to 2012 CRC increase from 2009 to 2012

  17. NPL Big banks should pay more attention to the scale of the loans and diversify it’s borrowing objects instead of aiways depending on the ediverstiture of non-performing assets to solve the problem, which can’ t solve the nature of the problem. BOC decreased from 2008 to 2012 CRC decreased from 2008 to 2012

  18. Loan- to- deposit ratio We also can conclude that big banks pay more attention on profit, however, small banks put more attention on security. BOC a synchronous change of BOC and CRC from 2008 to 2012. a tendency of increased from 2008 to 2009, a tendency of decreased from 2009 to 2011 and a tendency of increased in 2012 CRC

  19. Average data of all indicators With the development of liberalization of the interest rate, the banks face more fierce competition. The big banks pay more attention to the non interest income. Certainly, the spread will decline as competition increases, forcing small banks to try to find other ways (such as generating fee income from new services ) to make up for an eroding spread.

  20. THANK U Qin Jia Wu Qi Zhang Wanru Zhang Yanan

More Related