Determinants Affecting Profitability of State-Owned Commercial Banks: Case Study of China

The study examines the relationship between internal determinants, external determinants and profitability of state-owned commercial banks. We use pooled regression, fixed effect, random effect models on case top five Chinese banks from 2007 to 2019. results show that factors, measured by size, credit quality, liquidity, significantly positively influence banks’ profitability. State-owned have larger sizes, higher liquidity accordingly than other On contrary, factor, natural logarithm GDP, negatively influences decrease in GDP leads China. Our provide insight into banks, considering latest changes banking industry.