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An Empirical Study Of The Impact Of Non-interest Income On The Performance Of Commercial Banks In China

Posted on:2017-12-11Degree:MasterType:Thesis
Country:ChinaCandidate:L N WangFull Text:PDF
GTID:2359330503486279Subject:Finance
Abstract/Summary:PDF Full Text Request
In recent years, with our financial market reforms, the pace of interest rate marketization is accelerating and the phenomenon of China's financial “disintermediation” has become increasingly prominent, it makes our banks' mode that takes the interest rate difference for profit suffer a shock.The income structure of China's banks has been characterized by its concentration, that is to deposit and loan business via earning interest difference is the main source of profit. But after China's the financial market reform and open up and foreign banks enter the China's market, the market share is divided and the state also gradually has changed. The Central Bank of our Country has some data about social financing: among the total social financing in 2002, the RMB loan proportion is 91.9%,however in 2014 the RMB loan proportion is 59.6%. We can see that during that time, the RMB loan proportion appeared a big slide. Our country bank's mode that takes the interest rate difference for profit is facing a great challenge, so our country's commercial banks gradually found the advantage of non-interest income business and began to develop non-interest income business to optimize the income structure. Especially in 2015, the central bank cut interest rates three times. It shows that the central bank continues to reduce financing costs, at the same time, it also promotes the reform of interest rate marketization. Under such a economic condition, to explore the non-interest income business has an important practical and economic significance to the development and reform of the bank in the future.Firstly, the paper briefly reviews some relevant research literature, and then it defines the non-interest income and its scope according to the specific situation of our country. At the end, it discusses the development situation and characteristics of China's commercial banks from the theoretical aspect. In the empirical part, this paper summarizes some theories about non-interest income. On this basis, the paper uses the annual financial data from 2005 to 2014 of 16 commercial banks in China as the research object to establish panel data model and makes the model regression analysis. Through theoretical and empirical analysis of the two aspects of the analysis: non-interest business will drive the improvement of Chinese bank performance. Finally, based on the above conclusions, this paper puts forward some suggestion about how to treat the non interest income business of our country's commercial banks and how to improve its business accounting.
Keywords/Search Tags:Non-interest income, Commercial bank performance, Influence, The panel model
PDF Full Text Request
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