An Empirical Study Of Non-interest Income Effect On Business Performance Of Commercial Banks In China

With the increasing development of interest rate marketization,the competition between commercial banks is becoming more and more intense.As we all know,most of the income of commercial banks in our country came from the difference between loans and deposits in the past.However,the People's Bank of China carried out the interest rate reduction five times in 2015.It implemented an important policy,namely,no longer restricting the upper limit of the interest rate floating rate in October 24,2015.This is a milestone in the interest rate policy of commercial banks.The purpose of these measures is to further reduce the cost of social financing,but also to review the trend of the time to promote the development of the interest rate market.Chinese statistical yearbook data show that RMB loans accounted for 81.06% in social financing scale in2003.However,RMB loans accounted for 69.81% in social financing scale in 2016.RMB loans have been reduced significantly.In addition,"Financial disintermediation" makes the condition of capital supply and demand both sides no longer traded by commercial Banks.It will inevitably reduce the profits of commercial banks.Therefore,the fierce competition between commercial banks is increasing in this context.Most commercial banks begin to expand publicity through actual conditions,highlighting the characteristics of non-interest income businesses,constantly adjusting the composition of bank revenue,expecting to win a lot of non-interest income to ensure their own profits.Under such a macroeconomic background,we study the impact of non-interest income on the performance of various types of commercial banks and put forward feasible proposals based on the research results,which will have profound practical value for the development of commercial banks in the future.On the premise of reading and summarizing the literature of scholars both at home and abroad,this paper first uses qualitative analysis to elaborate the related theories and then uses quantitative analysis to do empirical research.This paper mainly studies the influence of the non-interest income of 5 large commercial banks and 11 joint-stock commercial banks on the bank performance.This paper is mainly discussed from fiveaspects.The first part is the introduction.It mainly introduces the research background and significance of the topic,literature review on non-interest income and bank performance theory at home and abroad and introduces the research train of thought,research contents and research methods.By comparing the achievements of previous scholars,this paper gives the innovation and inadequacies of this paper.The second part is about the theoretical introduction of non-interest income and bank performance.The non-interest income theory mainly expounds the definition,characteristics and influence factors;bank performance theory mainly expounds the definition,measure principle and several key indicators and expounds two important theories,namely the market power theory and efficiency theory structure.The third part mainly expounds the realistic analysis of the relationship between the non-interest income and the bank performance.This part mainly analyzes several stages of non-interest income experience in China,and expounds the current situation of non-interest income.The present situation of non-interest income of commercial banks in China is expounded in this paper.The fourth part is empirical part.This part summarizes 11 years' financial statements data of 5 large commercial banks and 11 joint-stock commercial banks in China and applies eviews8.0to analyze the financial data of 16 commercial banks in China from 2006 to 2016.The final result shows that the increase of non-interest income proportion has a significant role in enhancing the performance of large commercial banks and joint-stock commercial banks,whether in large commercial banks or joint-stock commercial banks.The fifth part is the policy recommendations about China's commercial banks to develop non-interest income,mainly to change the scope of business,improve the proportion of non-interest income,improve the risk tolerance of commercial banks,strengthen cooperation with other financial institutions,and cultivate professional talents and other suggestions.The innovation of this paper is to divide the sample into large commercial banks and joint-stock commercial banks,and use the latest financial data from 2006-2016;In the empirical part,the loan ratio,inflation rate and asset-liability ratio were added as the control variables.This is to consider risk factors and to make the analysis morecomprehensive.It provides the basis for the development of non-interest income for commercial banks.