Research On The Impact Of Non-interest Income On The Performance Of Commercial Banks In China

With speed up the process of market of interest rates, the gradual deepening of the financial reform, and other financial institutions increased the competition, the commercial banks are facing the pressure of spreads narrowed, and effectiveness reducing. In order to maintain their market position and gain more benefits, the commercial banks are beginning to seek transformation and innovative ways to develop non-interest income business, increase the proportion of non-interest income. However, our country’s commercial banks to non-interest business concept is not uniform, and the scope and classification of non-interest income and fee-based business and can sheet business distinction. Meanwhile, the extent of China’s financial market opening is not high, the bank development time is shorter, resulting in overall performance level of the banking industry is not high, the traditional spread income is still the main source of income, there is great potential to develop non-interest income.On the basis of previous academic studies, first we clear the commercial banks’non-interest income definition and classification, and with the intermediate business income and sheet business revenues were distinguished, to clear the research of this paper.The main sources of non-interest income is to analyze the characteristics and theoretical basis, but based on the data on China’s 16 listed banks in the analysis, the commercial banks in China’s total non-interest income increased year by year, fee and commission income remained non-interest income several other non-interest income business, and investment income, etc. are to be further developed.Again to our 16 listed banks for the study sample, though constructing the model to investigate the relationship between commercial banks and non-interest income between bank performance. The regression tell us that between the fee and commission income to bank performance are positive, also showed no bank performance was among several other non-interest income and bank performance significantly positive correlation between investment income and other non-interest income and bank performance significant correlation.Finally, we suggest some feasibility proposal including reasonable adjustment of the internal structure; improve service quality, strengthen management; and non-bank financial institutions, a strategic partnership; promote financial innovation proposal, in the hope that banks provide a valuable reference for further reform.