An empirical study on the factors influencing the development of private banking in China

Abstract

Recent years, China’s commercial banks’ operating scale was in expansion at the same time vigorously development in intermediary business, especially the private banking business was in steady growth, however the different listed banks had the different development levels. Based on the 10 listed commercial banks private banking business data from 2014 to 2018, the thesis made an empirical research on China’s private banking business development influencing factors by usage of regression model, and the result showed that: the main influencing factors of China’s private banking business development were the household wealth level, Chinese economic development level, and the overall strength of the bank. So we should enhance the banks’ overall strength with the household wealth level and Chinese economic development level increasing gradually, in that way to promote the private banking businesses’ sustainable development and the transformation of commercial banks.