The Study Of Market Competition Degree,Non-interest Income And Performance In Chinese Listed Commercial Banks

The effective market competition environment and the development of non-interest income business are important influence factors of bank performance.Recent reforms such as the entry of foreign banks,the liberalization of interest rates,the development of internet finance,and the construction of private banks have brought about dramatic changes in the competitive environment of commercial banks in China.Business strategies that focus on improving performance have been stable to commercial banks.Development plays a decisive role.At the same time as market competition has intensified,the proportion of non-interest income of commercial banks has changed significantly.Regarding the influence of market structure(including market concentration)on bank performance and the impact of non-interest income on bank performance,domestic and foreign scholars have studied a lot in these two aspects,but they strictly distinguish between market competition and market concentration.In order to measure the performance of banks,both risk and return factors are considered,and the mutual effects of the two on the performance of listed commercial banks under the joint effect of the two are analyzed.The changes in the degree of market competition,non-interest income are examined.The research on the impact of development on bank performance is as rare as ever.Therefore,this article attempts to explore this field.This is of great significance for reviewing the market competition environment,business development status,and risk performance evaluation of China's bank-listed commercial banks.First of all,this paper analyzes a large number of domestic and foreign related literature and research results,and summarizes the literature on the relationship between market competition and bank performance,non-interest income affecting bank performance,and based on relevant theories,respectively,on market competition and bank performance.The impact of correlation and non-interest income on bank performance is analyzed.In the empirical aspect,this paper adopts the new metric method—Boone index to measure the market competition degree of listed commercial banks,uses the translog cost function to calculate the marginal cost of each sample,and then calculates the corresponding Boone index.Considering both the income and risk factors,the risk-adjusted return on equity(SHROA)is used as an indicator to measure the performance of listed commercial banks,and the relevant data of 16 listed commercial banks in China from2007 to 2016 is used to determine market competition.,Non-interest income and the joint effects of the two(the intersection of the two)have established three models for the performance of listed commercial banks in China,and selected suitable static panel data models for empirical research.This study finds that the increase in market competition is not conducive to the improvement of the performance of listed commercial banks,but the expansion of non-interest income business will help improve the performance of listed commercial banks;during the sample period,as the degree of market competition increases,non-interest income The marginal impact of the positive performance of listed commercial banks will become smaller and smaller,and even when the degree of market competition increases to a certain extent,the increase in non-interest income will not be conducive to the improvement of the performance of listed commercial banks.Finally,on the basis of the above empirical analysis results,the research conclusions are put forward.The following conclusions are proposed for the development strategy of China's commercial banks and the reform of the banking industry by the government and the regulatory authorities: actively promote the development of non-interest income business,strengthen supervision and effectively prevent it Risks;While expanding non-interest income business,we should pay close attention to changes in market competition so as to prevent excessive market competition from deteriorating the performance of commercial banks and even threatening the stability of the banking industry.