A Study On The Change Of Non-interest Income Ration And Operating Risk Of Commercial Banks In China

With the enactment of the US "Financial Modernization Act",multioperation system has become the main trend business model of commercial banks,but separate management system is still implemented in our country and greatly limits the profitability and competitiveness of commercial banks.In order to set difficulties,China's banking supervisory authority has been trying to expand the business scope and to encourage comprehensive management of commercial banks,hoping them to increase the proportion of non-interest income and raise their level of service and profitability.Besides,disadvantages such as the downturn of economy,market-oriented interest rate inform,the representatives of internet finance Yu E Bao and P2P platform and etc.,urgently compel commercial banks to reform and innovate their sources of income,decreasing the proportion of traditional deposit and lending business and increasing the proportion of non-interest income.However,we should understand the truth that risks accompany benefits.Non-interest income bring benefits to commercial banks also might be changing the business risks faced by commercial banks at the same time.Based on this background,the paper focuses on researching the relationship of non-interest income and business risks of commercial banks with the method of theoretical and empirical analysis.Firstly,the article reviews the relevant literature,followed by analyzing the necessity of increasing the proportion of non-interest income by using financial innovation theory,diversification theory and economies of scale theory and also analyzes the relationship between non-interest income and business risk;secondly,the paper analyzes the status of non-interest income of China's large commercial banks,joint-equity commercial banks,urban commercial banks and rural commercial banks.In the empirical part,the paper carries out the correlation and regression analysis of non-interest income and business risks faced by commercial banks.The article obtains the following main conclusion through the empirical study:On the whole,the increase of non-interest income proportion can reduce business risks faced by commercial banks,but the depression is related to assets of commercial;the increase proportion of fee and commission can reduce business risks of large commercial banks and joint-equity commercial banks,but this conclusion does not apply to urban commercial banks and rural commercial banks at this stage.Therefore,the commercial banks need to combine their overall strength and capabilities to raise their proportion of non-interest income and form rational development strategy.For urban and rural commercial banks of small asset scale,they should balance their assets and non-interest income business,strive to improve the stability of non-interest income and reduce the operational risks caused by the large volatility of non-interest income.