A Study of the Coupling Degree between the Profitability and Risk Management Capability of Commercial Banks
Yan Chao *
School of Public Affairs, University of Science and Technology of China, No. 96, JinZhaiRd. Hefei, 230026,China and Office of the Board of Directors, Jiangsu Zijin Rural Commercial Bank CO., LTD., No.136, MengDuRd. NanJing, 210019,China
Song Wei
School of Public Affairs, University of Science and Technology of China, No. 96, JinZhaiRd. Hefei, 230026,China
Peng Xiaobao
School of Public Affairs, University of Science and Technology of China, No. 96, JinZhaiRd. Hefei, 230026,China
*Author to whom correspondence should be addressed.
Abstract
Based on the study of profitability and risk management capability index of commercial banks, this paper establishes a coupling model for profitability and risk management capability of commercial banks and conducts an empirical research based on data contained in 2012 annual reports of commercial banks listed in the form of A Shares in china, with results showing that the profitability and risk management capability of domestic listed commercial banks are at the stage of moderate coupling, upon which relevant suggestions are concluded.
Keywords: Chinese commercial banks, profitability, risk management capability, coupling degree, entropy weighting method