Research On The Influence Of Non Interest Income Structure Of Commercial Banks In China

In the context of the basic completion of the interest rate market reform and the continuous economic downturn,the interest income of China's commercial banks declined in2016,and the negative growth occurred for the first time in the decade after the financial crisis.Correspondingly,the non-interest income grew quickly.In the urgent need to seek a way out,commercial banks pay more attention to the expansion of non-interest business,trying to diversify the business,improve non-interest income,optimize the non-interest income structure,so as to maintain a favorable competitive advantage for commercial banks to inject new blood.Therefore,this paper focuses on the non-interest income structure,through the review of the existing literature,we put forward the research point of this study and innovation--the study of the impact of non-interest income structure on commercial banks.In this paper,we firstly introduced the concept,composition and characteristics of non-interest income,and the development of non-interest income structure of listed commercial banks in China is analyzed in detail.And then through the analysis of the relevant theoretical basis,we pointed out that the non-interest income structure of the possible impact on the bank effect,and and built the panel data model to carry on the empirical analysis.Finally,we find out:(1)For all bank samples,non-interest income significantly improved the bank's profitability,but did not improve the bank's risk level.From the non-interest income structure,the fee and commission income can improve the bank's profitability,but did not have a significant impact on the level of bank risk;Investment gains and losses may have a negative impact on bank performance.In particular,it can increase the banks' risk Level;Other business income can improve the risk level of commercial banks after the risk adjustment,significantly reduce the bank bankruptcy risk.(2)For different types of banks,the fees and commission income of the four state-owned banks can significantly improve their profitability and reduce the risk of bankruptcy;and the investment gains and losses significantly improve the profitability but did not raise the risk level as the whole sample;Exchange gains and losses improved the profitability of the bankafter the risk adjustment;Other business income significantly improved the bank performance;For the joint-stock banks,fees and commission income significantly increased risk-adjusted profitability,investment income amplify the business risk.Interest income does not have a significant effect on bank performance levels;For the city commercial bank,non-interest income has significantly reduced profitability,increased bankruptcy risk.In particular,other business income did not have positive effect on city commercial bank as other commercial banks.At last,base on the study conclusion,we give some policy recommendations on the development of non-interest for commercial banks.