The Research On Non-interest Income And Performance Of Commercial Banks In China

Asset business,liability business and intermediary business are the main incomesource of commercial banks. Financial disintermediation,market competition pressure,the change of market demand and financial regulation put forward higher request on thedevelopment of commercial banks in the future,encourage commercial banks to optimizethe income structure continuously by carrying out non-interest income business. Westerncommercial banks have already made the non-interest income got unprecedenteddevelopment through diversification and integrated management,such as vigorouslyexpanding investment banking, securities brokerage, insurance agency, fund sale, etc.In contrast,due to the modern commercial banks system perfect late,the contributionof commercial bank’s non-interest income to gross income is not high.Along with thefurther reform,the deeply reform of financial system, and the affects of factors such asfinancial disintermediation, It has been unable to maintain their profitability by relyingon interest income.With change of the management environment,commercial banksbegan to pay more attention to non-interest business,set all kinds of non-interest businessdevelopment strategies, take various measures to promote the development ofnon-interest business. However, whether non-interest business can effectively improvethe performance of commercial banks is still a problem which is worth of exploring andresearching.In the context,this paper hopes to find out relations and interdependence betweennon-interest business and the income of commercial banks through the analysis of ourcountry commercial bank’data.And then providing beneficial references for banks in theprocess of development of non-interest business.In specific research methods, this paperselected five state-owned commercial banks and seven joint-equity commercial banks asthe research object, using the commercial banks’statistics from2001to2011,which wereappeared on the website and the national bureau.Through the establishment of panel datamodel,I made empirical analysis on the relationship between non-interest income andperformance of our country commercial banks.The conclusions is:improving theproportion of non-interest income of commercial banks have a positive effect oncommercial banks’performance,no wether state-owned commercial banks or joint-stock commercial banks.and the state-owned commercial banks’performance is better than thejoint-equity commercial banks’.That is due to the expansion of joint-stock commercialbanks’non-interest income depends on the operating cost of the investment heavily, it isvery difficult for joint stock commercial banks to bring higher yields. So, commercialbanks should pay more attention to costs control to expand non-interest income,so as toachieve profit growth.