The Impact Of Non-interest Income Business On The Risk Of China's Commercial Banks

In recent years,the non-interest income business has flourished in China and has become an important engine for China's commercial banks to improve their profitability.However,while vigorously developing non-interest income businesses,we should also rationally realize that excessive development may increase the difficulty of bank management coordination and increase the level of bank operating leverage,and that the non-interest income business and interest income business are highly relevant and more unstable customer relationships may bring additional risks to the bank's operations.In this context,this paper attempts to study the impact of non-interest income business on the risk of China's commercial banks.This article first defines the concept of non-interest income business and bank risk,and sorts out domestic and foreign scholars' research on the relationship between non-interest income business and bank risk,and then introduces the development stage and status of non-interest income business in China.In combination with the actual development of non-interest income business in China,theoretical analysis of the impact of non-interest income business on bank risk,on the basis of the use of China's 24 listed commercial banks in 2006-2016 relevant annual data to establish a regression model,empirically examine the impact of non-interest income business on the risks of China's commercial banks.The research results show that non-interest income business can reduce the risk level of China's commercial banks.After conducting a subdivision study on different types of non-interest income business,it was found that fees and commission income businesses are conducive to improving the stability of bank operations,while others types of non-interest income business may adversely affect the stability of the bank's operations.By introducing the interactive items of non-interest income and banking competition,the paper also found that when the banking industry's competition exceeds a certain threshold,the increase in non-interest income as a whole and the fee and commission income will increase the bank's risk level.Finally,combining the development status of non-interest income business in China and the empirical analysis results,some policy suggestions are proposed for the development of non-interest income business and corresponding risk control of China's commercial banks.