The influence of external factors on the development of China's banking industry: a system dynamics modelling approach

摘要

There are many external factors influencing the development of the banking industry, but few literatures discuss the effects of multiple factors on the banking industry. In order to better promote the healthy and stable development of China's banking industry, this paper builds a simulation model based on system dynamics and uses Vensim PLE to systematically discuss the impact of money supply, supervision level, financial innovation, and GDP on bank profits. The simulation results find that money supply, financial innovation, and regulatory levels have a negative effect on profits, but GDP can promote profits.