Abstract
The banks' overall net profits have increased year by year since the start of banking reform in our country in 2003. It has caused great concerns in at home and abroad. Adopting a ROE model, this article analyzes the profitability of the state-owned commercial banks in China based on the data of the Bank of China and the Agricultural Bank of China. It proposes such measures of profitability as the banks' strengthening their financial innovation on the basis of stabilizing the existing profitability and decreasing the average cost levels by expanding the scale.
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