Research On The Impact Of Diversified Operations Of Commercial Banks In My Country On Performance

With the reform of interest rate marketization,the rise of Internet finance,the emergence of financial disintermediation,the entry of foreign banks and the development of capital market,commercial banks are facing unprecedented challenges.The share of the financial market has been continuously divided.On the other hand,the narrowing of interest rate differentials under the marketization of interest rates has hit the traditional deposit and loan business.After the economy has entered the new normal,the economic growth rate has slowed,and commercial banks have also been greatly affected.In this case,how to improve the management performance of commercial banks and achieve new development is very important,so commercial banks have to seek business transformation and develop diversification strategy.The diversification of commercial banks is characterized by diversified income,and the degree of diversification of commercial banks is mainly reflected in the proportion of non-interest income.Through the analysis of the present situation of the diversification of commercial banks,it is found that the level of diversification development is relatively low,and there is a big gap between the commercial banks and the developed countries in terms of the overall scale,the proportion of non-interest income,the number of kinds and the degree of innovation and so on.How to develop diversified business and how to arrange the structure of diversified business is the key to the performance of commercial banks.Therefore,it is of practical significance and practical value to study the effect of diversification on performance of commercial banks.Firstly,the thesis introduces the concept of diversification of commercial banks and the influence mechanism of diversification on the performance of commercial banks.Secondly,the thesis analyzes the evolution and development of the diversification of commercial banks in China.Thirdly,the financial data of 25 commercial banks with the top asset size from 2010 to 2016 are selected to empirically study and test the influence of the diversification level of commercial banks on their business performance.The empirical results show that there is a negative correlation between diversification and the performance of commercial banks,that is,after the implementation of diversification strategy,the overall operating performance of commercial banks has declined.However,the non-interest income generated by diversification makes up for the decrease of interest income to some extent and slows down the downward trend of operating performance.However,the non-interest income of commercial banks in our country is relatively low,and the contribution rate to profits is insufficient.And there are many problems in the process of diversification of commercial banks,which makes the positive impact of diversification on the performance of commercial banks is not significant.This thesis makes a detailed analysis of the empirical results combined with the current actual situation.Finally,taking Bank of China as an example,this thesis introduces the ways and causes of diversification,analyzes the effect of diversification,and puts forward some suggestions to improve the problems existing in the process of diversification of Bank of China.