An Research Of The Impact Of Commercial Banks' Non-interest Net Income On The Profitability

In recent years,China's banking industry has successively liberalized lending rates and deposit rates.The development model of "depository and lending spreads" brought by traditional deposit and lending business commercial banks relying mainly on is challenged.From the statistics at the end of 2016,we can see that: The average proportion of net interest income fell from 85.44% at the end of 2010 to 72.5%.The average non-interest net income increased from 14.56% at the end of 2010 to 27.50%.Therefore,this article selects the relevant quarterly financial data of 16 commercial banks to study the non-interest net income and its components,profitability and the relationship between them respectively,to provide suggestions for the transformation of traditional deposit and lending business and the improvement of profitability.The main research methods and research contents of this paper are as follows: First,the use of charts to analyze the status of development of non-interest net income and profitability;Second,the empirical analysis of the overall impact of non-interest net income;Third,the empirical analysis of the impact of important components of non-interest net income.The research conclusions of this paper are: First,the proportion of non-interest net income(NNII)is positively correlated with return on assets(ROA)and return on equity(ROE);second,proportion of net fee and commission income(NFCI)and proportion of net investment income(IVT)are significantly positively related to ROA and ROE,but differ only in the level of significance.Third,commercial banks must timely monitor its volatility,especially the more volatile business such as investment and exchange when developing a non-interest net income business.Therefore,when commercial banks developing non-interest net income business to promote the improvement of their profitability,they must comprehensively weigh the income and risks in order to maximize profits.