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

For a long time,the income source of our commercial banks mainly depends on the traditional deposit and loan business.However,with the banking industry's external environment continues to change,bank deposits and loans gradually reduced,the traditional deposit and loan business profit margins continue to narrow.Now,financial market is fully open and the process of marketization of interest rate is accelerated.The rapid development of Internet finance makes the competition of banking industry become more and more fierce.Relying solely on the profit model of borrowing spread income is not suited to the development needs of the times.So banks pay more and more attention to non-interest income business,and the non-interest income business as a new profit growth point of the bank.There is no doubt that the development of non-interest business,to seek new profit growth point is the commercial banks are currently facing problems.So,what is the impact of the development of non-interest business on commercial banks? Most domestic and foreign scholars have studied the impact of non-interest business on bank profitability and risk(stability)from the perspective of finance,But the conclusions are controversial,the bank's non-interest business development into a dilemma.This paper argues that both the "positive effects of non-interest business" or "negative effects of non-interest business" are actually external manifestations of the efficiency or damage of banks after the development of non-interest business.Efficiency can reflect the profitability of economic entities,sustainable development and competitiveness,is a comprehensive indicator of the core competitiveness of banks and concentrated expression.Therefore,based on the economic point of view,this paper explores the relationship between non-interest income and the efficiency of commercial banks through empirical analysis,and tries to give a new evidence to the mystery of "non-interest business economic consequences".This paper mainly studies the influence of non-interest income of commercial banks on its efficiency.Firstly,the definition and characteristics of non-interest income and the definition and measure of bank efficiency are introduced.On this basis,the influence of non-interest income on the efficiency of commercial banks is analyzed theoretically.Secondly,it introduces the development stage of China's non-interest income,and makes a detailed analysis of the development of non-interest income in China.Thirdly,this paper chooses the data of 16 commercial banks listed in China'sA-share from 2007 to 2015 to study the relationship between non-interest business and bank efficiency.Firstly,the DEA-Malmquist model is used to measure the total factor productivity of 16 banks.It is used as the explanatory variables to measure the level of bank efficiency.The impact of the development of non-interest business on bank efficiency is analyzed by using non-interest income ratio,fee and commission income ratio and investment income ratio as explanatory variables to construct regression model.In order to distinguish different types of commercial banks,the research samples were divided into three groups: sample banks,large state-owned commercial banks and joint-stock commercial banks.The empirical results show that the non-interest income,commission and commission income are positively correlated with the bank efficiency of all sample banks and joint-stock commercial banks.The investment income is positively correlated with the bank efficiency of large state-owned commercial banks,and the rest does not have significant correlation.In view of the above research and analysis,this paper puts forward some suggestions and countermeasures on the development of non-interest income business,and thinks that China should develop non-interest income and optimize non-interest income structure.