Research On The Impact Of Non-interest Income And Its Structure On Business Performance Of Commercial Banks From The Perspective Of Diversification

The non-interest income of commercial Banks business developed in our country already 30 years,during the time,the non-interest income of commercial Banks in China business gone through several stages.In 2014,the non-interest income ratio(NIIR)of commercial Banks in China has reached 22.83%,it is too litter when compared to developed country with 40%to 50%,but along with the advancement of interest rates liberalization and financial disintermediation,the traditional mode of loan margins are squeezed,non-interest income business received more and more attention.So it is very significant to discuss if the non-interest income has a impact on commercial banks and what kind of strategy will different banks adopt to develop the non-interest income.This paper gives a brief review of related articles and theory,analyze the relationship of commercial banks' non-interest income ratio(NIIR)and commercial Banks operating performance,combined with the real data,the paper analysis the development status of non-interest income and business performance.Then in the empirical part,this paper is divided into two parts:the first part analyses the impact of commercial banks' non-interest on commercial Banks operating performance,the second part analyses if different types of non-interest income of commercial banks have an impact on business performance.Both the two part of empirical part choose all the listed banks,state banks,joint-stock banks as three sample groups,using 2004-2014 data to do multiple regression analysis,the indicators of operating performance choose ROA and ROA adjusting for risk.The empirical results show that for all the commercial Banks,non-interest income ratio or income diversity index and commercial banks operating performance are presented positive correlation.For state commercial banks,non-interest income ratio and operating performance of significance is not obvious,the income diversity index is not related to the commercial banks operating performance,in the study of the same kind of non-interest income impacted on operating performance,Fee and commission income has a positive impact on operating performance,profit and loss on investments were not linked to business performance.For joint-stock commercial Banks,non-interest income ratio and diversified income have a positive impact on business operating performance,in the same kind of non-interest income business on study the influence of operating performance,Fee and commission income has a positive impact on operating performance,while profit and loss on investments has a negative effect on business performance.Finally,according to the results,this paper provides some advices of how to promote non-interest income to state banks and joint-stock commercial banks.