The Research On Non-interest Income Of China Merchants Bank

Since1970s, with the ficrce competition of the financial market and financial degregulation,Banking industry in western countries has taken measures to vigorously develop the non-interestincome business, Non-interest income business in western countries has been rapid development.In recent years, with the development of the process of global economic integration, Businessdiversification strengthens the competitiveness of foreign banks in China’s financialmarket.China’s commercial banks have taken measures to develop non-interest income business topursuit more profit. China Merchants Bank, with its advanced management capabilities and uniquecompetitive advantage, vigorously develop the non-interest income business. China MerchantsBank establishes the strategic positioning of profitability leading, first-class service quality andexcellence brand image. The ratio of non-interest income-to-operating income of China MerchantsBank has been rapid increase for nearly10years. The development of non-interest income ofChina Merchants Bank in the leading ranks of the commercial banks in China and has a certaindegree of representativeness.Firstly, basised on previous studies, cleared the definition and classification of non-interestincome of commercial banks. Through the compare with interest income, intermediate businessincome and off-balance sheet business income, clarify the scope of them which the range ofnon-interest income are widest, then followed by the intermediate business income, finally,off-balance sheet business income and non-interest income and interest income together constitutethe bank’s operating income, furtherly cleared the definition of non-interest income. Through theanalysis of the non-interest income constitutes, development trends and scal, systematic analysisthe status of non-interest income of China Merchants Bank and expounds the problems existing inthe non-interest income of China Merchants Bank. In the empirical analysis part, this paper selectsthe China Merchants Bank’s data during the first quarter of2003to the third quarter of2012in thesample data, using non-interest income and its influencing factors constracted the multivariatelinear regression model. The empirical shows that: operation and management level of ChinaMerchants Bank have positive influence of non-interest income development. The ratio ofloans-to-total assets is negatively related to non-interest income development this means thatdependence on credit business of China Merchants Bank have a significant negative impact for theincrease of non-interest income. M2and the exchange rate have positive influence of non-interestincome development this means that money supply and the exchange rate significantly influencedthe development of non-interest income of China Merchants Bank. It is clear that non-interest income of China Merchants Bank is sensitive with the changes of M2and the exchange rate. Finaly,On the basis of above analysis, this paper put forward the following suggestions: actively expandnon-interest income; Reasonable adjust the structure of non-interest income; Improve traditionalbusiness relationship with customers of China merchants bank; Reduce the dependence on creditbusiness; Increse the input of human and technology; To adapt to the external macro environment,obtain a bigger development space.Through the analysis of the status of non-interest income and the problems exist in thenon-interest income, this paper detaily introducted the non-interest income of China MerchantsBank. In the empirical part, the paper puts forward the linear regression model betweennon-interest income and its influence factors of China Merchants Bank to provide the basis andreference for expand non-interest income of China Merchants Bank. Finaly, on the basis of aboveanalysis, this paper put forward some suggestions to provide the reference for expand non-interestincome of China Merchants Bank.