A Study Of The Impact Of Non-interest Income On Banks' Operating Risks

In recent years, as the interest rate market reform is deepening,the phenomenon of financial disintermediation is aggravating,the competition in the financial industry is becoming more and more fierce and the financial services need to be diversified,so developing non-interest income business has become the consensus of the banking industry. Admittedly,the history of non-interest income business in China is short.Although non-interest income business accounting is much lower than the mature economies of Europe and America, but its size is growing.Since the US Subprime Mortgage Crisis broke out in 2008,some countries came to discuss the development of the risk of the banking on the non-interest income again. As whether non-interest income is to improve or reduce the risk of commercial banks, the viewpoint of academic varies as different research methods, states, research perspective, research time period. Therefore in order to understand the impact of non interest income on bank management risk in China more clearly, it is necessary to carry on the analysis through the empirical analysis. The conclusion has practical significance for the risk prevention and control of domestic banks to expand non interest income business at present.First of all, this paper expounds the significance of the research background, sort the relevant literature at home and abroad, and explains the research methods,content and technical route. Secondly,this paper defined the concept of non-interest income,summarize the main features and explains the necessity to carry out non interest income. In addition, the historical process of non interest income business in China's banks is reviewed, and its development status is analyzed by descriptive statistics. The empirical part as the core part of this paper, combined with the promulgation and implementation of China's deposit insurance regulations, allowing the reality of commercial bank insolvency, selects Z value bankruptcy index to measure operational risk of listed commercial banks.The main conclusions of the empirical part are as follows:(1)From the whole sample regression results we can found,Non-interest income has a significant negative correlation with the risk of bank management,with the non-interest income accounted for the increase in bank operating risk will be decreased significantly;The non-interest income is negatively related to the risk management of joint-stock commercial banks,and for the large state-owned commercial banks also have negative correlation, but not significant.(2)Whole sample bank asset size, net income accounted for gross profit,the growth rate of GDP and rate of return on net-assets has significant negative correlation on bank operating risk; and equity capital ratio, M2 growth rate of operational risk has a significant positive correlation.In addition to the M2 growth rate of joint-stock banks operating risk was not significantly positive correlation, the impact of other control variables on the share-holding system and the state-owned banks are consistent with the full sample bank.(3)Fee and commission income on the whole sample, the shareholding system and the risk of state-owned banks have a significant negative correlation,Investment income of the whole sample bank is not significantly positive correlation, the joint-stock banks was not significantly negatively correlated, the state-owned banks are significantly positively correlated;The other components of the whole sample and the joint-stock banks operating risk is significantly negative correlation, while the state-owned banks are negatively related, but not significant.At the end of this paper, theoretical and empirical conclusions are summarized,and from macro and micro point of view of two Chinese banks to carry out the non-interest income business at a reasonable level of risk and puts forward relevant policy suggestions.