An Empirical Analysis Of Non-interest Income And Performance Of Commercial Banks In China

The Commercial Bank of our country there has long been a problem of incomestructure of a single, lack of competitiveness. With the reform and development of thesocialist market economy and the financial mechanism, changes in domestic andinternational financial environment, the competition between commercial banks in China isbecoming increasingly fierce. Therefore, commercial banks in order to seek new profitgrowth point, and enhance the international competitiveness of Commercial Bank of ourcountry and sustainable development, we must reform the financial system, accelerate theinnovation of financial products, to improve non-interest business accounted for theproportion in the financial business.Western countries since the last century since the seventy’s financial conditions haveimproved continuously, the government to relax the regulation on financial system,financial technology promotion, western countries began to pay attention to thecontribution of non-interest business development of commercial banks, thus usher in anew development opportunity for the development of non-interest business. In recent years,as China’s financial system reform and the entry of WTO, the financial market is graduallyopening up, foreign banks and with the rise of China’s non-bank financial institutions, thenecessity and urgency of making China’s commercial banks began to know the bank toadjust the income structure. But, for all the non-interest income part whether can bringprofit for banks to improve and at the same time to achieve the aim of reducing risks, mostof scholars at home and abroad have failed to reach a unified conclusion. This paper basedon describing our non-interest income status, but also shows the situation of bank incomestructure in china. According to the development experience of the western countries andChina’s actual situation, an empirical analysis of the relationship between interest incomeand non-Performance of the Commercial Bank of our country, the income structure ofcommercial bank in China, to improve the bank’s operating income and decrease the risk ofmanagement will have the positive significance.The empirical analysis, this paper selects the sample data recorded in the Chinafinancial statistics yearbook of China’s four state-owned commercial banks and sevenjoint-stock commercial banks in the1996-2011data, index quantification of these data, andestablish the regression model, regression analysis: the non-interest income accounted forhaving a positive effect compared with the performance of state-owned commercial bank;joint-stock commercial banks only commissions and fees and performance into positiveeffect, so it needs further adjustment of non-interest income structure, to improve the commercial bank’s performance, improve the commercial banks to reduce income riskmanagement. Finally, based on empirical analysis and status of non-interest income ofcommercial banks in China, put forward to promoting the development of China’scommercial banks countermeasures and suggestions.