Our Country Commercial Bank Income Structure Impact On The Performance Of The Research

Commercial banks of China rely mainly on traditional credit business for bank business income rather than non-interest revenue and other business income nowadays. Non-interest business is as important as credit business in advanced foreign banks, so the income structure of China’s commercial banks is unreasonable. Therefore, the domestic banks reach the consensus that it is essential to implement the strategy of transition and change traditional management mode and mode of growth which rely on scale expansion and income credit. Changing the income structure is the center of strategy of transition and banking business innovation in the whole banking sector. In this context, this paper is a tentative study of the income structure of domestic commercial banks.This paper chooses13representative listed commercial banks in China as research objects. Based on the research results at home and abroad and combined with the specific situation of the listed commercial banks in China, the research used shift-share model, multiple linear regression model for panel data and comparative and inductive methods to research on the revenue structure of China’s commercial banks systematically. First, based on the income structure of China’s commercial banks, use the shift-share analysis method to evaluate the effectiveness of the revenue structure of China’s commercial banks;Second, accounting for revenue from the credit, the proportion of non-interest revenue and investment revenue respectively, perform the empirical analysis on the revenue of the banks, and come to the conclusion that different types of revenue ratio impact on the bank performance differently; third, draw conclusions and make recommendations.This paper uses Shift-share model to evaluate the effectiveness of the income structure of China’s commercial banks from two aspects. On one hand, considering foreign advanced banks as benchmark from the banking sector integrity point of view, the paper made a study of business growth, income structure and competitiveness of China’s banking sector compared with foreign advanced banks. On the other hand, this paper considered total revenue of China’s banking industry as the standard from the point of differences of all commercial banks, researches the difference of revenue structure and level of competitiveness between domestic commercial banks in China. Shift-share model is calculated as follows:from the overall point of view, on the whole, the growth share and competitive share of China’s banking industry is positive, indicating that the growth and competitiveness of China’s commercial banks is better than the World Bank. But the share of the revenue structure of commercial banks in China is negative, indicating that the business structure of China’s commercial banks is uncoordinated, and the income structure has deficiencies; from the aspect of difference, the share of the revenue structure of other banks are all negative expect for the Construction Bank, Bank of China, and China Merchants Bank, indicating that the revenue structure of these banks is unreasonable, which needs further Optimization.The purpose of using Eviews software to build multiple linear regression model for panel data is to make an empirical study of credit business income, non-interest revenue and investment income on bank performance of China’s commercial banks. In the process of the empirical analysis, the paper reached the accurate conclusion after doing empirical analysis of five listed state-controlled commercial banks and eight listed small joint-stock commercial banks. The empirical results show that the result of the empirical analysis of the13listed commercial banks is the same. The credit income shows a negative impact on bank performance; the non-interest income and investment income shows a positive impact on bank performance.Finally, make recommendations from the preceding results:firstly, optimize the credit structure to promote the balanced development of the traditional business; secondly, develop non-interest business to promote the integration of business transformation; thirdly, develop capital market investment trading business evenly.