An Empirical Study On The Effect Of Noninterest Income Business On The Performance Of Commercial Banks

In recent years,the development trend of China's economy has gradually been guided by high quality growth,and the report of the 19 th session of national congress of the communist party of China clearly points out that we should deepen the supplyside structural reform and accelerate the construction of an innovative country,which also indicates the direction for the transition and upgrading of commercial banks in China.Under the background of the constant promotion of interest rate marketization,the rapid rise of the direct financing ratio and the speedy development of internet finance have made the banking competition fiercer,which means that the traditional business model of commercial bank is facing severe dilemma,so the development of non-interest income business becomes an important channel for the transformation and upgrading of commercial banks.The question is: Does the non-interest income business carried out by commercial banks really improve the performance of banks? If the performance can be improved,then the commercial bank needs to grasp the opportunity to optimize the business structure,but if not,then we need to combine theory and practice to analyze the cause and find the way to solve it.In view of the above problems,this paper has carried on the empirical research about the influence of non-interest income business on the performance of commercial banks.First of all,the author reviews and sums up the research on the relationship of the non-interest income business and profitability and risk of the commercial banks,and then introduces the theoretical basis of the development of the non-interest income business,which provides a theoretical foundation for the correlation analysis of later writing.At last,the author uses the performance scoring method to measure the performance of the bank and reconstructs the regression model.And based on the study of present situation and conclusion,the relevant suggestions are put forward.Through the empirical research,the conclusion is that the development of noninterest income business can promote the performance level of commercial banks.Nevertheless,there are so many types of commercial banks in our country,for different kinds of commercial banks,the effect of non-interest income business on bank performance is different: for state-owned banks,because of their own scale benefits and brand advantages,the development of traditional interest business is strong,although the state-owned bank's non-interest income business has developed every year,compared to the interest business,the influence of non-interest business is still limited,so the contribution to bank performance is not significant.For joint-equity commercial banks,the development of non-interest income business has positive influence on bank performance,mainly because of its strong ability of financial innovation and the proportion of its interest business is not as large as that of state-owned banks.Therefore,non-interest income business can make some contribution to the improvement of bank performance.For urban commercial banks,the development of non-interest income business is relatively slow,and risk management needs to be strengthened,so the impact on bank performance is negligible.Finally,based on the analysis of the non-interest income business and the results of empirical research,this paper puts forward the corresponding suggestions for the development of non-interest income business of commercial banks in China.