The Impact Of Non-interest Income On Bank Risk

In the face of the rapid development of non-interest business of commercial banks in China,the non-interest income affects the risk of banks through what way?And does this impact increase bank risk? Based on the data of 40 commercial banks from 2007 to 2015,this paper analyzes the relationship between bank risk and non-interest income ratio,income concentration,the interaction of income concentration and non-interest income ratio.Draw the following conclusions.First,the non-interest income has an important influence on the risk of the bank,the results show a significant positive correlation between the two.Because Non-interest income has its own volatility,.The interaction of income concentration and non-interest income ratio has an important influence on the risk of the bank.Second,after the financial crisis,the regulatory authorities strengthened their supervision of banks.In this context,the volatility of non-interest business was significantly reduced as a result of regulated controls.The relationship between non-interest income and bank risk is not significant,but the bank risk is increased by covariance effect of interest income and non-interest income.Third,because of banks' own characteristics,it is difficult for large state-owned banks to promote non-interest business,so the impact of non-interest income on bank risk is not significant.Other commercial banks,however,need to promote non-interest businesses.So the two channels of the influence of non-interest income on bank risk are reflected in this kind of bank,the volatility of non-interest income and the covariance effect between non-interest income and interest income.