Research On The Impact Of Non-interest Business On The Performance Of China’s Commercial Banks

After long-term development,China’s commercial banks have achieved fruitful results in expanding business scale and improving operational capabilities.In the 2017 "Banker" magazine’s global list of 1,000 banks,17 Chinese commercial banks entered the top 100,and 126 Chinese commercial banks entered the top 1,000.In recent years,China’s interest rate liberalization reform has gradually deepened,and direct financing channels have developed rapidly.Commercial banks have gradually shifted the focus of their business operations from deposit and loan operations to non-interest-based businesses,and non-interest-income business income and categories have both increased and expanded.However,after the outbreak of the global financial crisis in 2008,some non-interest-income banks in developed countries were bankrupted and reorganized,while banks with more balanced business development demonstrated good risk resilience during the crisis;at the same time,At this stage,China’s commercial banks also frequently encountered non-interest business violations.This shows that there are also deficiencies in the diversified business strategy in which commercial banks focus on non-interest business development.Under this background,this article takes the impact of non-interest business on the business performance of commercial banks as the starting point,and discusses the choice of the development and transformation model of China’s commercial banks.This paper reviews relevant theories of financial innovation,financial intermediation,and synergy,and compares the development of non-interest business of domestic and foreign commercial banks,and selects panel data of 12 large-scale listed commercial banks in China from2008 to 2016,using a random effects model to analyze The Impact of Non-interest Business on the Performance of China ’s Commercial Banks.The results of the study show that the proportion of non-interest income of commercial banks is negatively correlated with their return on assets,cost-to-income ratio and net interest margin,and has a positive correlation with their non-performing loan ratios.In the short term,the development of non-interest business has no positive effect on the business performance of China’s commercial banks,and it will even have a negative impact on the operation of traditional businesses.In view of this research result,thispaper believes that commercial banks still need to focus on the development of traditional businesses,encourage innovation of non-interest business products,change business concepts,and improve internal and external risk prevention and control mechanisms.