The Impact of Exchange Rate Changes and Diversified Revenue Structure on The Profitability of Commercial Banks
DOI:
https://doi.org/10.54097/fbem.v11i2.12158Keywords:
Commercial banks, Changes in exchange rates, Income structure, Profitability.Abstract
All the income of commercial banks is divided into traditional interest rate spread income and various non-interest income, all along, the bank's income mainly comes from its deposit and loan spread, that is, net interest income, and other businesses develop slowly. However, with the deepening of interest rate market-oriented reform and foreign exchange system reform, the diversified development of commercial banks has become increasingly prominent, becoming one of the basic hubs for bank transformation and financial risk prevention and control. Based on the revenue data of 10 listed commercial banks in China from 2011 to 2021, this paper analyzes the impact of commercial banks' profitability on their income structure and exchange rate changes, so as to explore the business strategies that can bring profit improvement to banks in the context of changing macro economy.
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