A Study On The Effect Of Non-interest Income On Risk Of Commercial Banks In China

In recent years, our country gradually liberalized restrictions on access to foreign banks, banking deposit loan increasingly fierce competition, financial disintermediation and interest rate market reform intensifies, the commercial banks to want to achieve rapid development, it is only through the continuous improvement of non interest income accounted for the proportion of operating income. In this context, the study of the impact of non interest income on the risk of commercial banks in China is of great significance.Non-interest income business started late in China, the domestic scholars on the non interest income, mainly focused on the qualitative analysis of non interest business and non interest business on bank performance, and the non interest income and bank risk quantitative analysis. In non interest income is concerned, it is clear that the commercial banks to expand non interest income is to improve or reduce the risk of banks, how to determine the structure of the non interest income structure of commercial banks in the development direction, to avoid the impact of systemic risk, these problems have not been unified conclusion, it is important for the survival and development of the banking industry.First, this paper introduces the theory of non interest income, non interest income and the development of the current situation, from the non interest income and net interest income of the contrast trend chart, found that non interest income accounted for the proportion of business income increased year by year, and the volatility of non interest income than net interest income; Then through the portfolio theory, variance covariance model and impulse response function analysis, the paper proves the volatility of non interest income and net interest income. In order to further analyze the relationship between non interest income and net interest income, the paper also studies the four main parts of the non interest income; Finally, this paper selects the 15 listed commercial banks of our country in 2007-2014, and discusses the relationship between non interest income and bank risk from the perspective of different types of commercial banks.The results show that:(1) the relationship between the total non interest income and bank risk, all commercial banks, non interest income and risk relationship, and commercial banks to expand non interest income business can spread the risk of banks, and the non interest income and risk relationship is not significant, which is the same as the policy support effect of large state-owned banks.(2) the relationship between non interest income and bank risk, all commercial banks have a greater impact on the exchange rate, and the higher of the sample data of the joint-stock commercial banks, and the relationship between the Commission and the bank risk is higher.(3) the relationship between non interest income and bank risk is also related to the size of the bank. The relationship between large scale commercial banks is high. In addition, the relationship between non interest income and bank risk is also affected by macroeconomic environment. In order to further verify the robustness of the results, in order to ensure the stability of other control variables, the use of SHARP index instead of bank risk index Z as explained variable, the model is robust test. Through the analysis of the volatility and correlation between non interest income and net interest income of 15 listed commercial banks in China, commercial banks are proved to expand non interest business, and increase the risk of banks, and make a further study on the relationship between non interest income and bank risk.