Study On The Impact Of Income Diversification On The Performance Of China 's Commercial Banks

With the process of interest rate marketization reform became faster and faster,the situation of our commercial banks became more and more passive.In order to achieve competitive advantage,commercial banks have to reduce the deposit rate on the basis of the existing.However,the operating profit of commercial banks in our country is mostly from the difference between deposit interest rate and loan interest rate.In order to obtain a stable source of profits,commercial banks have to seek outside business income,accelerate the development of intermediate business income,which tends to be diversified.However,the research on the impact of diversification of commercial banks' income on operating performance is not unanimous.Some scholars believe that the diversification of bank income through the expansion of bank sources of income to increase bank profits,improve operating performance.However,some scholars believe that the diversification of income will affect the income of the existing business and increase the risk of the bank.On the basis of previous studies,this paper studies the impact of diversification on the performance of commercial banks by collecting the data of 42 commercial banks in china.On the basis of this,the paper studies the effect of income diversification on operating performance under different monetary policies.Because of the different types of banks showed different operating performance.the commercial banks will be divided into three types: the large commercial banks,joint-stock commercial banks and City Commercial Bank.The research of this paper is divided into six parts: The first part mainly introduces the research background,the research significance,the research thought,the research content and the method,the domestic and foreign research present situation and the main innovation point of this article;The second part introduces the related concept and the theoretical foundation.And the third part introduces the current situation of the income structure of the existing commercial banks in China.The fourth part introduces some performance rating methods and indicators commonly used in commercial banks.The fifth part is the empirical analysis of this article,verifying the diversification of commercial banks on the impact of business performance and after the introduction of monetary policy the relationship between the two from the empirical point of view,and the robustness test.The sixth part puts forward relevant policy suggestions according to the conclusion drawn from theabove research.The conclusion of this paper is that,before the introduction of monetary policy,the overall banking,large commercial banks,joint-stock commercial banks and the urban commercial banks are the same,and the income diversification improves their ability to obtain profits.After the introduction of monetary policy,the empirical results show that monetary policy factors have a significant positive effect on the relationship between diversified income structure and operating performance of large commercial banks,indicating that the relaxed monetary policy environment has improved the impact of diversification to operating performance of large commercial banks.After the introduction of monetary policy,there is no significant relationship between the diversification of income and the performance of the other type commercial banks,and the effect of the monetary policy on the relationship between the other types of firms is not particularly significant.