The Empirical Study Of Non-interest Income, Bank Performance And Bank Risk

with the adjusting of Social financing structure, the coming of market-orientedinterest rate and the trend of financial disintermediation, more and more banks takenon-interest income into consideration, but how do them affect banking performanceand risk? Whether the overseas study or domestic research, whether academicmembers or business people, they do not reach an agreement. According to thesituation of china banking, the paper tries to give the answer. The paper divided thenon-interest income into the diversification of banking non-interest income and theratio of non-interest income to operating income. Both are brought into the model toexplore the impact to banking performance and banking risk. Based on the financialdata of14major commercial banks from2000to2012, we draw the conclusion thatboth indicators have none-obviousness negative impact on banking performancewhile banking performance mainly depends on increasing banking size and equitycapital, On the other hand, They have obviously negative impact on banking risk, Itmeans that scale economy and scope economy are too small to form synergistic effect.Due to incoherence among different business, the combination of different businesscan reduce risk, which identifies the theory of Harry M. Markowitz about portfolioinvestment.