On the impact of quality economic development on the profitability of city commercial banks

As an important part of local financial institutions, urban commercial banks play an important role in serving the local real economy. This paper discusses the impact of the level of high-quality economic development on the profitability of urban commercial banks from an empirical perspective. It is found that the impact of high-quality economic development on the profitability of urban commercial banks takes on a 'U’-shaped non-linear characteristic, and listed banks, urban commercial banks headquartered in small and medium-sized cities and non-eastern regions are more likely to reach the turning point of the curve. Further discussion reveals that there is a threshold effect of the level of innovation and shared development on the profitability of urban commercial banks. Based on this, this paper concludes that city commercial banks should, on the one hand, take root in the local market and improve the quality of financial services; on the other hand, they should direct substantial support to corporate innovation and actively engage in green financial services.