The Empirical Study On The Influencing Factors Of Non-interest Income Of Chinese Commercial Banks

As the core of indirect financing of the financial market,Chinese commercial banks are intermediaries that build platforms for both supply and demand.With the continuous increase in the breadth and depth of Chinese financial market,the measures of interest rate control that originally intended to restrict bank competition and stabilize the operation of bank operations have become an obstacle to restricting commercial banks' initiative response.Therefore,China has liberalized interest rate controls and has basically completed the marketization of interest rates.However,the reduction of interest margins makes it difficult for traditional commercial banks to continue their traditional operations.In recent years,the focus of Chinese commercial banks is gradually shifting towards non-interest income.As an important way to obtain profits,the proportion of non-interest income to operating income increased gradually from 12.51% in 2007 to 30.36% in 2016.Changes in the income structure of commercial banks have received common attention from bankers,regulators and scholars.Therefore,more researches center on the development of non-interest business.At present,it is still controversial whether non-interest income can improve the operational performance or reduce the risk of the banks.However,scholars and experts generally agree that the development of non-interest business in Chinese commercial banks is a general trend.Therefore,it is necessary to explore the influencing factors of non-interest income and then put forward specific suggestions.Except the introduction of the first chapter,the full text is divided into four parts:In first section,we classify and summarize the domestic and foreign literatures on the non-interest income according to the research content respectively.Then,we define and classify the concept of non-interest income and explain the background and status quo of non-interest income development in China.In addition,the differences between banks are analyzed by comparing the non-interest business of China to U.S.,as well as the driving forces of non-interest income development in China by combining international experience and domestic conditions.We have found that the total amount of commercial banks in China has rapidly expanded since 2007,but there still arise some problems such as slowing growth and unbalanced business structure.In the next section,we conduct empirical analysis by applying mean regression and quantile regression techniques on an unbalanced panel data.From the microscopic point of view,we choose asset-expense ratios that measure management efficiency levels,net interest margins that measure profitability of interest operations are selected,loan-to-deposit ratios that measure liquidity risk and the scale of assets that represents the foundation of commercial banks as variables to explore the factors of non-interest income of listed Chinese commercial banks.By applying mean regression method,we find that the impact of net interest margin on non-interest income is not significant while the asset-cost ratio,loan-to-deposit ratio,and the scale of assets all have significant effects: the asset-cost ratio is negatively affected,while the loan-to-deposit ratio and the scale of assets are positive.In addition to the overall sample analysis,the sample is divided into two parts based on the scale of the banks.And the reasons for the differences are explained separately.Furthermore,we take the advantage of quantile regression method to study the marginal effect of scale of assets on non-interest income ratio.A diminishing marginal effect is found.Finally,on the basis of the research conclusions,suggestions from four directions for the development of non-interest income are proposed as follows: differentiated development,income structure adjustment,cost-effectiveness management,and electronic technology application.Meanwhile,we prospect the follow-up research direction.This paper mainly has the following two aspects of discovery: On the one hand,through the empirical data after interest rate liberalization,we obtain the new conclusions,such as the profitability of traditional banking business has no significant impact on non-interest income;On the other hand,by taking the banks' total assets as the main research variable,we use the quantile regression method to test the marginal diminishing effect of assets on commercial banks' non-interest income.