A Study Of Non-guaranteed Financial Products’ Influence On The Performance Of Commercial Banks

Due to the booming economy and increasing personal income of China, the conventional personal financial mode, deposit in bank, can no long meet residents’ increasingly diverse financial need. Currently, the developing financial market and the lack of investment channel lead the personal commercial banking financial products become the most efficient channel for personal finance. Among those personal financial products, the non-guaranteed financial products match the demands of its participants, which drives it becoming a significant component of China’s personal commercial banking financial product market. For commercial banks, the non-guaranteed financial products can help them expand the scale of loan, increase their intermediate business income and accelerate the pace of operating mode transformation. However, the non-guaranteed financial product can create off-balance-sheet assets and liabilities, which could also cause the lack of gear ratio to the commercial banks and even the inter-department risk spreading. Therefore, it is meaningful to research on how and how much the non-guaranteed financial products affect the performance of commercial banks.On the basis of analysis non-guaranteed financial product’s effect on the performance of commercial banks in detail theoretically, this work quantifies the effect of non-guaranteed financial product, focusing on the components of interest income and non-interest income of commercial banks, in order to provide the realistic basis of the effect of non-guaranteed financial products on commercial banks.The1st chapter introduces the meaning and background of this work, meanwhile analyzing the existing research of non-guaranteed financial products and emphasizing the main points of other scholars’research on effect of non-interest income and intermediate business income on commercial banks. The2rd chapter, through stock aspect and increment aspect, analyzes the effect of non-guaranteed financial products on the balance sheets of commercial banks. The3rd chapter provides the evidence which can prove that the non-guaranteed financial products can affect the performance of commercial banks through promoting commercial banks to transit their roles, transit yield structure as well as clients relation. The4th chapter, using quantification, classifies the effect of non-guaranteed financial products into Balance-Sheet Effect and Off-Balance-Sheet Effect which can be fatherly classified into Role Transition Effect and Structure Transition Effect, and proves that Balance-Sheet Effect and Structure Transition Effect is positively correlated with the performance of commercial banks while Role Transition Effect does not have correlation with the performance of commercial banks. The5th chapter presents and analyzes the differences between theoretical analysis and empirical analysis, also provides some suggestions to policy makers.Currently, most scholars just focus on the problems occurs among the development of financial products and the solutions. This work, using a new vision, builds a theoretical imagine of the effects of non-guaranteed financial products on commercial banks and provides an empirical analysis on it.