Theoretical And Empirical Research On Non-interest Income Of China's Commercial Banks Affecting Banking Stability

In recent years,with the deepening of China's financial market,the financial impact of the Internet reform and more and more strict financial regulation,China's commercial banks have to change the traditional business model,to develop non interest income business.since 2006,China's commercial banks non interest income growth rate has been higher than net,the proportion of non interest income in the bank's operating income rising,non interest income of commercial banks has become an important new source of income.However,with the rapid growth of non interest income of commercial banks in China,the related business risks are accumulated expansion,influence the stability of banks and the financial system,pay close attention to the financial regulatory authorities to strengthen supervision,but there are still problems emerge in an endless stream.In order to improve the efficiency of regulatory policy,it is necessary to start from the subjective motivation of China's commercial banks to develop non interest income businesses,and find out the reasons for the growth of non interest income influence the stability of banks from the root.This paper begins with the development and current situation of non interest income of commercial banks in China for 2007-2016 years,based the theory of commercial bank's franchise value,from the perspective of bank risk bearing motivation,analyzes the subjective motivation of commercial banks to develop non interest income business,then elaborated the mechanism of non interest income business affecting the stability of banks due to excessive risk-taking motivation,and puts forward the hypothesis of optimal non interest income and the measurement standard.A panel data model and a VAR model are established to examine the impact of non interest income on the stability of the bank,The results show that there is a "inverted U"relationship between non interest income and bank stability,and the optimal non interest income ratio is 41.34%;the increase of net fee and commission income will increase the stability of the bank,but the income of off-balance-sheet business of shadow-like bank in net fee and commission income will negatively affect the stability of the bank.other non-interest incomes,which are mainly investment-based and transaction-oriented,have large fluctuations.The increase in their proportion will reduce the stability of banks;The VAR model test shows that the effect of non interest income on the stability of the banking system has a longer lag.Other factors,such as macroeconomic factors,bank assets scale and capital supervision,and the changes in the banking market structure will also have a certain impact on the bank stability.Finally,according to the above analysis,from two perspectives of banking business development and banking supervision,this paper puts forward countermeasures and suggestions on how to improve the business transformation process of commercial banks on the basis of maintaining bank stability.