A Study Of The Relationship Between Non-Interest Income Structure And Performance Of Commercial Banks

Under the background of "the new situation, the new normal". The commercial Banks’traditional business model of eating spreads is unsustainable. China’s banking industry will pay more and more attention to non-interest income business development, hoping to realize the transformation. In this context, in recent years, China’s banks’non-interest income business develop rapidly, it’s proportion of revenue in the commercial banks increased steadily. The role of increasing revenue, stable profit, risk management become more and more important.Therefore, this article will focus on the study of non-interest income. Based on existing literature review and discuss, it raised the starting point of this research and innovation-study the influence of non-interest income structure of commercial banks performance. On the text, at first, described the concept, composition and characteristics of non-interest income, and a more detailed analysis of the 2007 to 2015 non-interest income development of China’s banking. Then on the basis of relevant theory, pointing out how non-interest income structure would influence the effect on bank performance, and then test it. Thereby establishing the panel data model to do empirical analysis, getting the following conclusions:(1)As for the samples of all Banks, non-interest income significantly increased the profitability of Banks, but did not improve the level of risk of the bank. As for different bank group, the big four’s non-interest income significantly improve the profitability of Banks and reduces the risk of insolvency; And joint-equity commercial bank’s non-interest income has a significant negative effect on bank performance; The development level of non-interest income of urban commercial banks is low, thereby no significant impact on performance.(2) In terms of the structure of non-interest income, for all samples, all bank charges and commission income contributed to the profitability of the Banks improve, but no obvious influence on bank’s risk level; Investment profit and loss may bring negative effect on bank performance, especially increases the level of risk; And other business income can improve the level of bank risk-adjusted returns, significantly reduce the bank risk of insolvency. For different types of banks, the big four bank’s fee and commission income can significantly improve its profitability, reduce the risk of bankruptcy; And investment profit or loss may deteriorate bank performance level; Exchange gains and losses to improve the profitability of the Banks’ risk adjusted; Other business income significantly improved the bank performance; For joint-equity commercial banks, the non-interest income did not have obvious effects on bank performance; For urban commercial banks, every part of non-interest income significantly reduced the profitability, increased the risk of insolvency. Finally, combining with the research conclusion, put forward policy suggestions on non-interest income business development of commercial Banks in China, and optimizing the non-interest income structure.