Calculation And Analysis Of The Benefit Of Diversified Financial Services

The operating income of commercial banks is composed of interest income and non-interest income, in a very long period of time, the business of China’s commercial banks is mainly savings and loan business, the increase of a bank’s income mainly depends on the interest income, the proportion of non-interest income is very low. In recent years, with the deepening of China’s banking reform and market competition intensifying, as well as affected by the financial "disintermediation" phenomenon and interest rate liberalization, the commercial banks in China gradually realized to it is very important to adjust income structure, actively develop nontraditional business, increase the approaches to get revenue, from the original rely on interest income to develop the non-interest income, financial services become increasingly diversified.Compared with domestic studies on non-interest income, studies on financial services diversification and the benefits of diversified services are much less, so this paper is written on the basis of non-interest income theory, analyze the present situation and influence factors of noninterest income, measure the degree of financial services diversification and calculate the benefit of diversification, and puts forward suggestions on how to promote the diversification of financial services according to the result of empirical analysis.The main content of this paper includes the following aspects:First of all, this paper introduces the meaning and reason of financial services diversification, and the types and characteristics of non-interest income business, distinguishes between noninterest business, intermediate business and off-balance sheet business, introduces the related theory of financial services diversification, to provide a theoretical basis for our research.Then, this paper introduces the dynamic development of financial services diversification, analyzes the present situation of financial services diversification from three aspects: the total scale, product structure, market share. And build the model, analyzes the influencing factors of financial services diversification from macro and micro.Third, the empirical research on the benefit of diversification of financial services, use the data of 11 sample commercial banks of year 2003-2013, use the non-interest income to construct the income diversity index, measure the degree of financial services diversification by this index, then build panel data model, to measure the benefit of financial service diversification. Results show that the return on bank assets is positive related to income diversification index, it shows that diversified financial services can bring more benefits to the bank, in particular, for every 1% increase of the degree of diversified financial services, the return on assets of commercial banks will increase by 0.0035%; further analysis found that different banks get different benefit basis from the diversified financial services. According to the empirical research results and the current situation of the banks, the paper puts forward some suggestions for commercial banks to further promote the diversification of financial servicesFinally, summarize the conclusion of the research.