Research On The Impact Of Non-Interest Income On The Performance Of Commercial Banks

In recent years,with the accelerating of the pace of interest rate marketization,developing of the financial disinter-mediation,the income of the traditional deposit and loan business of commercial banks faced with severe challenges.The trend of mixed operation of financial makes intra-industry competition become more intensely.It is an important measure for varies of banks beginning to involve in non-interest business,transforming to diversified strategy,and searching for new profit growth point in replying the pressure of spreads narrowing phenomena.This thesis focuses on impacts of non-interest business on performance of different kinds of commercial banks.Through empirical analysis,it aims to improve the income structure and provide meaningful suggestions according to the research results.Firstly,based on previous studies,cleared the definition of non-interest income of commercial banks including fee and commission income,investment income,net income trading and other business income of four parts.Through the compare with intermediate business income and off-balance sheet business income,clarify the scope of them which the range of non-interest income business are the widest,then followed by the intermediate business income,finally,off-balance sheet business income.Secondly,based on financial statistics and financial statements of 16 listed commercial banks of China,the thesis makes comparative analysis of the development status between the state-owned commercial banks and shares commercial banks from the overall size of non-interest income,the proportion of non-interest income,non-interest income component and net fee and commission income composition.The conclusion is that the proportion of non-interest income is still low though the non-interest income has expanded rapidly.Also fee and commission income is still the main source of non-interest income while investment income and several other non-interest income businesses need to be further developed,and there is a great difference in fee and commission income structure from various banks.Thirdly,it selects the financial year data of 16 listed commercial banks during the period of 2008 to 2014 for the study sample,studied the influential effect between the commercial banks non-interest income and the performance of bank by constructing a panel data model an regression analysis.The regression results suggested that the increasing of the proportion of non-interest income really made positive effect on performance of commercial banks,but the results were not significant.The fast growing of proportion of non-interest income in shares commercial banks made their positive effects superior to state-owned commercial banks.Finally,effective countermeasures and relevant recommendations are put forward to improve the non-interest income of commercial banks in China.In order to further enhance the positive contribution of non-interest income,different banks should define accurately,to carry out discrepancy developing strategy of non-interest income business.To forge comprehensive financial service platform,banks should upgrade information technology,promote the product and service innovation,introduce high-quality versatile talents.Improve staff performance assessment mechanism,intensify the proportion of the non-interest income business in the assessment of performance,strengthen the operation among the inner management compartments,then to guard against external risks actively,establish a reasonable supervision and give up power in moderate degree in order to achieve the commercial bank of sustainable development.