The Impact Of Non-interest Income And Structure On The Profitability And Operating Risks Of Commercial Banks

In view of that situation at home and abroad,the intensity of globalization competition is intensify,and China’s interest rate reform process is unceasingly promoted,so the traditional business model of commercial bank is not sustainable.our bank of China is more and more regard the business development of non-interest income board.Under this background,non-interest business in China’s banking industry rapid development in recent years,and the proportion of revenue in the commercial bank gradually increase.Therefore,this article will focus on the effect of interest income and its structure.With a review of the literature at home and abroad and comb,this paper presents a study and innovative approach to a major study of non-interest income and structure of commercial Banks profit ability and the influence of operating risk.In style,the first combed the non-interest income concept,composition and characteristics,and from 2007 to 2016 were analyzed in detail the development of our country commercial bank non-interest income situation,and made a detailed comparison on the characteristics and development bank non-interest income with the United States,thus it is concluded that the development of commercial Banks of our country non-interest business experience and enlightenment.And then through the comprehensive related theoretical basis,analysis of non-interest income and structure on bank profitability and operating risk effect,and panel data model is established,the group carries on the empirical analysis and wheel.In the end,we get he following conclusions:(1)The big five Banks and the stock Banks:the increase in non-interest earnings is helping to increase the profitability of these two Banks,the city business:the percentage of non-interest earnings,but the decline in earnings.And this difference is the main reason of the operating expenses of the control level.(2)From the perspective of non-interest income structure,five major commercial Banks:the fees and commissions and other business income of non-interest income can significantly improve their profitability and reduce the business risk;The stock Banks:the increase in fees and fees,the exchange of profits and the fair value changes,and the great improvement in the profitability of the Banks,not the other parts of the interest earnings that have no apparent effect on the profitability of the bank.For the city commercial bank,from the point of regression results,fee and commission income,changes in fair value gains and losses,and other business income through the test of significance,is a significant positive impact on profitability,but the other non-interest income volatility is larger,so the non-interest income did not improve overall profitability.(3)The five big Banks and the shareholding Banks:the increase in non-interest earnings,which would significantly reduce the risk of the five great Banks and the stock Banks,and the higher the percentage of non-interest earnings,the higher the percentage of non-interest earnings,which is not necessarily a risk to the city’s merchant Banks.This is because the commercial bank risk resistance ability has a certain relationship with the size of the bank.Five big banks:Its large scale and abundant resources of funds,resistance of non-interest business risk level is higher,so can effectively spread risk by means of non-interest business development.