A Study On The Impact Of Non - Interest Income On The Operating Risk Of Chinese Listed Banks

With promoting the process of reforming the interest rate liberalization in China, the protecting advantage of the interest rate has disappeared for the listed commercial banks in China. The profit area of the traditional interest has become reduced. Therefore the non-interest income has become the important direction of changing the risk structure of single income and inevitable trend in commercial banks’ furious industry competition. There will be a great impact of increasing non-interest income on operating risk of listed banks. So, studying this issue has very important significance for Chinese listed banks to increase the non-interest income.Based on the above background, this paper adopted the latest financial data of the bank and the method of panel data model from two aspects-- bankruptcy risk and performance risk by collecting the annual financial data of 13 major listed banks in China from 2006 to 2013 in order to systematically carry out the study from 4 aspects. First explain the defined scope of non-interest income and its own characteristics. Next tell the development status of non-interest income of the listed commercial banks in China and the correlation analysis of various components and interest income; Then to select variables and construct model according to theoretical analysis, and to study, the relevant impacts of non-interest income on operating risk of commercial banks employing the empirical method; At last to present corresponding countermeasures and suggesting according to the empirical results..According to the empirical results, the increment proportion of non-interest income could effectively lower the operating bankruptcy risk of listed banks among which the proportion of poundage and commission income was positively correlated with operating correlated with bankruptcy risk of the bank. However, the increase proportion of non-interest income was not significantly correlated with improving the performance of listed banks. And the reason may lie in the high correlation of non-interest income and interest income, as well as the development of non-interest income which were blocked by the divided operation management applied in China. Accordingly, the author put forward the relevant suggestion to the further development of non-interest income from six aspects.