The Research On The Effect Of Non-interest Income Ration On The Operating Risk Of Commercial Banks In China

With the gradual opening up of the financial market and the deepening of the degree of financial liberalization,the competitive landscape of China's financial industry and its business operations have undergone tremendous changes.The large-scale entry of foreign banks,the continuous expansion of non-banking financial institutions,and the sudden emergence of internet finance have continuously squeezed the profitability of domestic banks' traditional credit business,forcing China's banking industry to continue its business innovation and profit model innovation.Therefore,China's commercial banks attempt to broaden their income channels through the development of non-interest business to get rid of the dependence of profitability on deposit and lending spreads,and realize the transformation of income structure.However,the bankruptcy of large financial institutions in western countries in the sub-prime mortgage crisis once again reminded the banking industry that changes in the bank's income structure caused by the development of non-interest income will not only affect the performance of commercial banks,but also their impact on business risks.At the same time,with the completion of China's deposit insurance system and the improvement of bankruptcy-related laws and regulations,the rigid payment of China's banking industry will be gradually broken down,and the market-based business model of self-operating and self-financing will be the next step for the development of China's commercial banks.direction.When the national credit is no longer the bottom of the bank,it means that if the commercial banks of our country are insolvent due to poor management,they will also face bankruptcy and liquidation like ordinary companies and will withdraw from the market.Based on the above background and combined with research purposes,this paper regards banks as a special enterprise.From the perspective of enterprise risk management,defining the business risks studied in this paper is "the changes of commercial banks due to uncertainties in the course of business operations.Thus suffer losses or even face thepossibility of bankruptcy." According to the definition of the commercial bank's operating risk,this paper will explore the impact of non-interest income ratio on the operational risk of China's commercial banks based on the perspective of bankruptcy,and use the bankruptcy risk to measure the commercial bank's operating risk.Before the study was conducted,the paper found out that through the combing of domestic and foreign related literature,domestic and foreign scholars did not reach a consensus on whether the increase in the proportion of non-interest income would increase the risk of bank operations,resulting in inconsistent conclusions due to non-interest income business operations.The impact of risk is reflected by the different risk effects of the national system,the scale of banks,and the development of non-interest income,which further shows that the Western banking industry's non-interest business development model cannot be directly applied to China's banking industry.Therefore,this paper will select the panel data of 23 commercial banks in China,and explore the impact of non-interest income ratio on the operational risk of China's commercial banks through a combination of qualitative and quantitative methods.Prior to empirical analysis,this article first elaborated the theory of portfolio theory,scope economic theory,and economies of scale theory and established the above theory as theoretical support for the theoretical basis and empirical part of this article.Then,through the analysis of the development status of non-interest income,it is found that the proportion of non-interest income of China's commercial banks has been rising year by year,but there is still a certain gap compared with Western mainstream banks.Among them,the net fee and commission income is the most important source of non-interest income in China.Secondly,based on the theory of asset portfolio,this paper analyzes the correlation and volatility of non-interest income and net interest income of commercial banks in China,and uses this model to analyze the volatility of operating income by using the variance model.The increase in proportion will increase the operational risk of China's commercial banks.In order to verify the above conclusions,this paper takes the bankruptcy risk Z-value coefficient as the explanatory variable,constructs the panel regression model with the proportion of non-interest income and the internal composition of non-interest income as explanatory variables,and empirically analyzes the proportion of non-interest income and its internal The composition of the ratio affects the operational risk of China's commercial banks.Through the analysis of the regression results,the following conclusions are drawn:(1)From the perspective of the banking industry,theincrease in the proportion of non-interest income will increase the bank's operating risk,and its main source of increase in risk is investment income,exchange gains and losses With other non-interest business income,the increase in the proportion of net fee and commission income can reduce the bank's operating risk.(2)The increase in the proportion of non-interest income of large state-owned commercial banks will increase their operational risks.The sources of increased risk are investment income,foreign exchange gains and losses,and other non-interest business income.The increase in the proportion of net fee and commission income can be reduced.State-owned banks' operating risks.(3)The increase in the proportion of non-interest income from national joint-stock banks will increase their operating risks.The main sources of increase in risk are foreign exchange gains and losses and other non-interest income.The proportion of net fee and commission income and investment income increase.There is no significant impact on its business risk.(4)The increase in the proportion of non-interest income of local commercial banks will increase business risks.The main sources of increase in risks will be investment income and other non-interest income.Net fee and commission income and exchange gains and losses will increase proportionately.The influence of sex commercial banks is not significant.Finally,according to the research conclusions,this paper proposes corresponding countermeasures and suggestions for the development of non-interest income in China from both micro-level and macro-level.In this paper,when studying the impact of non-interest income ratio on the operational risks of China's commercial banks,based on the influence of most non-interest incomes on the overall operating risk of most scholars,we further analyze the proportion of non-interest income in the internal structure of business operations.The impact of risk clarifies the source of risk for non-interest income.At the same time,the majority of scholars study the impact of non-interest income on the operating risks of 16 listed banks,and expand the sample to 23 commercial banks,adding to the study of local commercial banks that are rarely involved in existing literature.According to the types of banks,the research samples are divided into large state-owned commercial banks,national joint-stock commercial banks,and local commercial banks.They discuss the proportion of non-interest income and the proportion of non-interest income in the internal structure and their impact on the business risks of different types of commercial banks.