Research On The Influence Of Diversification Of Income Structure Of China's Commercial Banks On Profitability

For a long time,interest income has been the main operating revenue of China's commercial banks.However,with the impact of factors such as the slowdown of economic growth and the interest rate liberalization,traditional deposit and loan spread income will not be able to meet the development needs of commercial banks.After the economy entered the new normal,the structure and power of economic growth have changed,the economic structure has been continuously optimized and upgraded,and the economic growth momentum has been driven by innovation.China's commercial banks are also actively changing the profit model that was mainly based on interest income.Diversification of income structure.The non-interest income business of China's commercial banks has accounted for about 20% of operating revenue after the development in recent years.Although there is a certain gap compared with developed countries,it shows that there is still much room for development of commercial banks in China.Therefore,China's commercial banks need to actively promote the development of non-interest income business,adjust the income structure,and adapt to the needs of today's economic development,while also enhancing their own profitability.This article starts with the analysis of the influence of income structure adjustment on profitability in five parts: The first chapter is the introduction part.First of all,it describes the topic selection background and research significance of the paper,and then summarizes the research results of domestic and foreign scholars.Based on the basic writing direction of this article,the final summary of the full text summed up the possible innovation and deficiencies.The second chapter mainly divides the income structure of China's commercial banks from two perspectives,which are classified according to the business structure and income structure of commercial banks,and then describes the theoretical basis of the research content of the thesis,and the theoretical basis and business Banks combine specific analysis.The third chapter analyzes the income structure and profitability of China's commercial banks.Firstly,it explains the status quo of China's commercial banks' income structure and profitability,points out the characteristics of commercial banks' income structure,and then analyzes the income of commercial banks in China.Specific factors of structure and profitability.In the fourth chapter,Stata measurement software is used to empirically analyze the annual data of 16 listed commercial banks in China from 2007 to 2016,and the Herfindahl index is introduced as one of the explanatory variables.The 16 commercial banks are divided into three categories to make regressions.The analysis shows that the adjustment of the income structure of different types of commercial banks affects the profitability.The fifth chapter is mainly based on the content of the previous article and the results of empirical analysis to draw conclusions and put forward constructive suggestions,making the conclusions of the study have practical significance.The research conclusions show that: First,the total non-interest income of China's commercial banks is expanding,but the ratio is not high and the structure is too single.Therefore,there is room for adjustment in the income structure of commercial banks;second,non-interest income.The impact on the profitability of China's commercial banks is significant,and they need to be actively developed to give full play to the advantages of non-interest income at the current stage;then,the development level of non-interest income of commercial banks of different scales in China is different,resulting in the degree of impact on profitability.Differently,commercial banks need to develop non-interest income businesses according to their own actual conditions.Finally,the rapid expansion of the scale of commercial banks is not conducive to the improvement of profitability.At the same time,commercial banks need to pay attention to the adjustment of their own income structure.Ignoring quality.