FACTORS AFFECTING THE PROFITABILITY OF COMMERCIAL BANKS

Abstract

This article analyzes the profitability and profitability indicators of commercial banks. Banking services are very diverse and constantly replenished with various innovations. The following are the main services that bring commission income to the bank: cash register services of legal and physical entities, operations with plastic cards, issuing bank guarantees, banking services for clients in currency contracts, brokerage services in the securities market, etc. In many foreign countries, most banks provided their customers with settlement, cash and other services free of charge. As a result of the decrease in the interest margin, that is, due to the difference between the average values of attracting and placing resources, banks had to abandon this practice. Currently, we can see the increase of commission income in the total income of banks.