Effect Of Non-interest Business On Listed Bank's Performance

With the accelerating of market liberation of interest rate, the constantly impact of the internet finance corporation as well as the developing diversification of customer financial needs, the banks in China are facing increasingly competition in traditional deposit-leading business which directly lead to the declining of the bank's deposit-lending net income growth. So far, China's commercial banks state-owned or non-state-owned are facing with the problem of rely highly on the traditional deposit-lending interest business. Under this background, the non-interest business becomes more and more important. But for the studies of whether non-interest business can improve the bank's performance, the scholars did not reach a consensus due to the different research subjects and time. So combined with China's actual situation to study the relationship between non-interest business and bank performance deeply has a very important practical significance.On the basis of the existing research results analysis, this paper empirically researched the relationship between the non-interest business and bank performance of China's listed banks in 2004-2014. Firstly, this paper investigates the impacts of non-interest business on the bank performance. The results showed that non-interest business hasn't affect the state-owed banks'performance obviously. But non-interest business has positive impacts on the non-state-owed banks' performance. Secondly, this paper combined with aggressive strategy to examine the relationship between non-interest business and bank performance. It turns out that the aggressive strategy has positive impacts on the relationship of state-owed banks' non-interest business and bank performance. But the aggressive strategy hasn't obviously impact on the relationship of non-state-owed banks' non-interest business and bank performance. Finally, according to the empirical results this paper puts forward some advises for the listed banks and then prospects of the future relative research.This study aims to study the relationship of non-interest business and bank performance. And explore a more suitable strategy for different types of commercial banks in non-interest business development. So the conclusion can provide effective support for both theory and practice in non-interest business management.