A Research On The Non-interest Income And Risk Of Commercial Banks

With the deepening of market-oriented reform, there is a great challenge for the commercial banks of China which always rely on the profit pattern of traditional credit expansion, they are actively exploring the non-interest income business which is a new business development path outside the traditional interest income business, and the largest part of non-interest income are the fees and commissions. Whether the risk of commercial bank for different sizes banks which are developing the non-interest income business are same and what is the difference between commercial banks of China and the United States, now there is little research that is relevant.According to the world’s top 1000 banks rankings from the British Banker magazine in 2013, choose the 96 commercial banks in China and the former 96 commercial banks in the United States, use the unbalanced panel data from 2008 to 2013 model to do the empirical analysis. First of all, the risk impacts of developing non-interest income business for commercial banks are analyzed in theory. Secondly, set up the measurement model, Z value measures bankruptcy risk,SDROA index and SDROE index measure management risk, the proportion of non-interest income in operating income and the proportion of fees and commissions in non-interest income are selected as explained variables, total assets of numerical lnTA, lending LOANS, deposits DEP, financial leverage EQUITY are used as control variables, meanwhile total assets of value multiplied by the NⅡ are introduced as interactive items. Finally, the difference between commercial banks of China and the United States are compared.By comparison, the commercial Banks which are developing non-interest income business can reduce the risk of commercial bank bankruptcy; meanwhile the small commercial banks have more obvious reduced effect. For fees and commissions income of business development, China’s commercial banks and American commercial banks present a different orientation and scale effect, China’s commercial banks will increase the risks. The main reason is that China’s commercial banks pay more attention to asset scale expansion, the American commercial banks pay more attention to management efficiency. In addition, the business model of commercial banks is different between the two countries; China’s commercial banks are mainly using separated operation mode, American commercial banks are using highly mixed management pattern, the rich risk aversion tool is also a main reason.