The Study on the Impact of Financial Derivatives Business on the Profitability of Listed Commercial Banks in China
- 1 Faculty of Economics and Business, University of Malaysia Sarawak, Samarahan, Malaysia
- 2 Faculty of Innovation and Entrepreneurship, Lu’an Vocational Technical College, Lu’an, China
- 3 Faculty of Finance and Mathematics, West Anhui University, Lu’an, China
- 4 Faculty of Economics and Business, University of Malaysia Sarawak, Samarahan, Malaysia
- 5 Faculty of Economics and Business, University of Malaysia Sarawak, Samarahan, Malaysia
Abstract
In recent years, with the deepening of financial innovation, more and more financial derivatives continue to emerge. Because financial derivatives have the function of hedging risks, these financial derivatives are also very popular among listed commercial banks. In recent years, the scale of the financial derivatives business of commercial banks is also getting bigger and bigger. However, financial derivatives bring benefits to commercial banks, but also bring relatively large risks to commercial banks, which also need to be paid attention to commercial banks. This paper analyzes the current situation of the financial derivatives business of listed commercial banks in China and the influence mechanism of financial derivatives business on the profitability of listed commercial banks in China, and puts forward suggestions.
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