The Cost Of The Four State-owned Commercial Banks, Non-interest Income Business

With the prosperity of the financial markets, financial deregulation, the traditionalcredit business of commercial banks, has a huge impact. The deepening of financialliberalization, internationalization, integration of the concept of the financial systemhas undergone a significant change, commercial banks want to change in place, thedevelopment of both non-interest income business and interest income business is oneof the goals of the business strategy. Chinese commercial banks have long been ofinterest income as the basis for stable and sustainable development. After joining theWTO, in the face of the opening up of China’s financial markets, banking sectorbetween the countries in severe form of the banking sector and the increasinglyintensified competition in China’s four state-owned commercial banks want to beinvincible, must change its traditional business model. Its structure with the strongdevelopment of non-interest business, diversification, cost of corrosion phenomena ofprofits generated, so we have to be the point of view more transferred to the cost ofnon-interest income business. Of China’s four state-owned commercial banks between2006-2011data sample using a linear regression, obtained the non-interest incomebusiness of commercial banks on the relationship between bank assets and capitalgains are not obvious. Using multiple linear regression analysis methods in theanalysis of the relationship between non-interest income business and operatingexpenses, the benefits of banking business by non-interest income increased far lessthan they brought about the increase in operating expenses, reduce non-interest incometo increase the bank net profit. The method of non-interest income business costfactors after using factor analysis to identify the main influencing factors, andclassification analysis, this proposed development banks, non-interest incomebusinesses to reduce their cost of countermeasures for China’s four state-ownedthedevelopment of commercial banks do offer modest means.