Empirical Study On Factors Affecting Non-interest Income Business Of China's Commercial Banks

With the continuous promotion of interest rate liberalization,the various systems in financial market have been becoming better and approaching perfection day by day.and the horizontal competition among banks have been fierce increasingly.Therefore,the striving to develop non-interest income business has gradually become one of the important development strategies of commercial banks in China.The scholars abroad have done extensive researches on non-interest income business,while in China,this business in commercial banks started]ate and developed slowly,and much research was hindered by the classification standards and data problems.Thus,to enhance the awareness of non-interest income business in commercial banks in China through in-depth analysis of the influencing factors is of great significance to the development of the banking industry and even China's social economy.Despite that the total amount and proportion of the non-interest income in commercial banks in China have increased in recent years,this business still faces the problems of excessively single product types,unreasonable product structure and unobvious scale effect compared with the banks abroad.There is still room for the improvement in the development of non-interest income business in China.Based on the previous research results,I selected the data of the 40 stock-listed commercial banks in Shanghai,Shenzhen and HK from 2015 to 2017 and conducted an in-depth analysis on the influencing factors to non-interest income business by utilizing the empirical analysis method.By choosing the proportion of the non-interest income to gross trading income as the explained variable,the bank scale,loan-to-deposit ratio,net interest ratio,capital adequacy ratio and non-performing loan ratio as the explanatory variable,and the per capita disposable income as the control variable,I put forward the hypothesis on the basis of the theoretical research by predecessors,and construct the regression model.It is shown by the results of the regression model that the influence of the various variables on the selected sample of non-interest income business is not balanced.On the whole,the non-interest income in the commercial banks is positively correlated with the bank scale,capital adequacy ratio and per capita disposable income,while it is negatively correlated with the net interest ratio and non-performing loan ratio.It has no significant correlation with the loan-to-deposit ratio.Finally,in this essay,I also put forward five suggestions to strengthen the development of non-interest income business in commercial banks in China from five aspects:actively promoting the transformation of income structure of commercial banks,increasing the proportion of non-interest income and optimizing the structure,as well as improving the level of risk control in the commercial banks.