Research On The Impact Of Non-interest Income On The Performance Of Commercial Banks

The impact of non-interest income on the performance of commercial banks is a focus issue that the academic community has been concerned about.With China's marketization of interest rate basically completed,the rapid development of Internet finance and increasingly prominent financial disintermediation situation,commercial banks' traditional credit business has been severely constrained,which leads to narrowed deposit-loan margins.Therefore,In order to' meet challenges of narrowed spreads,commercial banks gradually optimize the income structure and actively carry out non-interest income business.This paper first reviews the existing literature at home and abroad.On the basis of relevant theories,this paper analyzes the mechanism of non-interest income influencing the performance of commercial banks.Then the paper analyzes the non-interest income of commercial banks,which can make us have a better understanding of non-interest income's development status.And for the indicator more scientific,the paper measures the performance of commercial banks by using factor analysis including four aspects indicators of profitability,mobility,safety and growth.Then the paper descriptively analyzes the impact of non-interest income on the performance of commercial banks.In the empirical analysis part,based on micro data of China's 129 commercial banks from 2007 to 2015,considering three perspectives of the non-interest income level,internal structure of non-interest income and diversification of non-interest income,this paper has carried on the empirical test on how non-interest income influences the performance of commercial banks.The empirical research shows that non-interest income has significant positive effects on the performance of commercial banks.Different types of commercial banks are different to this effect and the state-owned banks and joint-stock banks have the strongest effect.From the perspective of internal structure of non-interest income,fees and commissions and other business income can promote the performance of commercial banks.From the perspective of diversification of non-interest income,the lower the diversification of non-interest income,the better the performance of commercial banks.Finally,combined with foreign advanced experience and empirical results,the paper puts forward some suggestions to improve the performance of commercial banks,namely,actively expand non-interest income business and create a good environment for the development of non-interest income business.