The Impact Of Commercial Bank 's Income Structure Diversification On Risks

China government continue to promote the domestic market interest rate reform since 2005, while increasing the financial system reform, support for the private banking and Internet banking continue to develop. At the same time the rising of "new three board" market-oriented new equity financing further challenge the traditional position. China’s commercial bank is facing an unprecedented decline in the operation and performance of pressure.In response to increasing pressure and competitive pressure of declining performance, traditional commercial banks need to continue to deepen reform, optimize revenue and business structure, diversified revenue structure, and constantly improve the proportion of non-interest income to reduce dependence on traditional business. The traditional bank’s strategy to diversify revenue in the implementation process, although diversified revenue structure will bring to enhance business performance, but also may give commercial banks greater risk. Therefore, study the impact of diversification on the income structure of commercial bank has important theoretical significance and practical significance.First, this paper determines the research background, significance and research purpose of this article; Secondly, this paper analyze the related literature at home and abroad, reveals the present situation of domestic commercial bank’s income structure diversification; Again, in this paper, the related income structure diversification theory has carried on the detailed introduction and analysis; On this basis, this article puts forward its own research perspectives and research train of thought, and selected 2005-2014 10 years data of 16 listed commercial Banks for empirical analysis. The empirical results show that there is not a significant positive correlation between the degree of risk and revenue diversification structure of commercial banks. This paper argues that in the stage that Interest rate is not determined by the market, the diversity of income structure of commercial bank is not spread the risk. Finally, this paper summarizes the shortcomings, and s put forward specific recommendations based on the empirical result.