Research On The Relationship Between Diversified Income Structure And Efficiency Of China's City Commercial Banks

As an important part of China's banking industry,city commercial banks play the important role in serving local economy.At present the city commercial bank is focusing on the traditional business of deposit and lending,which the interest income is the main part of the whole income.However,Influenced by the market economy fluctuations,the banking business environment is undergoing a series of important changes,which the competition in the banking become more and more intense.City commercial banks are difficult to achieve the development simply rely on the traditional single interest income.Thus,city commercial banks how to improve their operational efficiency is particularly critical by improving the income structure to deal with the impact of the external environment change and challenge.This paper is going to explore the influence on between diversified income structure and the efficiency of the bank from the perspective of city commercial Banks in our country.First of all,this paper describes the related concepts and theories and illustrates the current situation of the development and mechanism about diversified income structure of city commercial bank.Second,this paper uses the super efficiency DEA model to analyze and calculate the technical efficiency,pure technical efficiency and scale efficiency of city commercial bank.The third,selecting2010-2015 sample data of 32 city commercial banks on the basis of using the panel data model,this paper calculates the interest income,non-interest income,different parts of non-interest income and other control variables influence on city commercial bank efficiency.The empirical results show that the non-interest income proportion and assets proportion have a positive influence on the technical efficiency and pure technical efficiency of city commercial banks but have a negative influence on the scale efficiency.The capital growth has no influence on the city commercial banks but onlyhas a positive influence on pure technical efficiency of the second category of banks.The asset rate has no influence on the overall city commercial banks but only has a negative influence on technical efficiency and pure technical efficiency of the second category of banks.LDR has no influence on the overall city commercial banks.In non-interest income different parts,the service charge and commission fee has no significant effect.The investment income has a positive influence on both two kinds of bank technical efficiency and pure technical efficiency,but has a negative influence on the scale efficiency.Other income only has a positive influence on the scale efficiency of the first category of banks.Based on the empirical results,this paper suggest that the city commercial banks should optimize the income business,improve the management system,establish talent mechanism and strengthen risk prevention to promote the city commercial banks efficiency.