An Empirical Study Of The Impact Of Non-interest Income On The Performance Of China's Commercial Banks

For a long time,the source of profits of commercial banks in China has been dominated by deposit and loan spreads.With the gradual deepening of multiple influences such as financial disintermediation,interest rate marketization and booming Internet finance,China's commercial banks have begun to vigorously expand non-interest business in order to seek their own leap-forward development.While the non-interest business is developing at a high speed,we also see that the non-interest income structure of banks is relatively simple,mainly concentrated on the fees and commissions with low technical content.The added value of these businesses is not high,and it is highly correlated with the interest business.Whether it can effectively spread the risks and improve the overall efficiency of the bank remains to be studied.To this end,this paper attempts to study the impact of non-interest income on the performance of China's commercial banks.This paper first summarizes the domestic and foreign scholars' literature on non-interest income and bank performance research,then defines the concept of non-interest income business and bank performance,and sorts out the theoretical basis of the impact of non-interest business on bank performance.Based on the development status and problems of China's noninterest business,the empirical data of 16 representative commercial banks in 2010-2017 were selected and found to be: In general,the proportion of non-interest income is negatively correlated with the performance of commercial banks.This is largely due to the fact that noninterest income directly reduces bank income and masks the role of non-interest business in diversifying risks.In terms of classification,the effect of non-interest business to reduce the performance of non-state-owned banks is more obvious,but there is no indication that noninterest business will also reduce the performance of state-owned banks.Further decomposing non-interest income found that the fee and commission business did not significantly affect the bank's earnings,but it could significantly reduce the bankruptcy risk.Investment in profit and loss business can increase bank income,but significantly increase bank operating risks.Based on the empirical results,this paper proposes relevant recommendations.First,banks should focus on diversification and introduce relevant financial technology talents when developing non-interest businesses;Second,the government rationally liberalized the bank's high value-added business innovation and promoted the pilot operation of integrated operations.