The factors influencing profitability level commercial bank

Commercial banks are an indicator of development of the economy as a whole, as if the economy is functioning effectively, the banking system is getting enough resources to invest in its active operations. If the country is in crisis, the commercial banks are faced with obstacles to development in two ways: there is a lack of funds and their sources for the formation of the resource base and reduced demand for banking products, due to which the bank can earn income. Thus, the profitability of the commercial bank is an important indicator, which allows not only to determine the effectiveness of an individual bank, and economic conditions in the country or region. The article describes the indicators characterizing the level of bank profits per unit of equity, which allow for a detailed analysis of the bank''s profitability and identify the causes of acting directly on the profit margins of the commercial bank. Various types of classifications of factors that affect the profit of the bank are considered, as well as a generalized classification, which contains the internal and external factors affecting the profitability of commercial bank. Presented and justified administrative decisions that can be taken control commercial bank in order to increase profitability of their activities. It is decisions such as the growth of total assets, which bring bank interest income, an increase in the share structure of the bank balance of earning assets, an increase in interest rates on active operations and reduction of interest rates on passive operations, increase the share hosted high-interest assets. The positive effects of their implementation and the additional risks for the bank in making such decisions have been observed.