Research On The Impact Of Income Diversification On The Performance Of City Commercial Banks

City commercial banks have become an important part of China's banking system.Faced with the pressure brought by financial marketization and financial innovation,the business model that relies on traditional spread income is difficult to sustain,and diversified operations have become an important strategic choice for city commercial banks.In order to obtain a stable source of profits,commercial banks have to seek operating income other than traditional business income,accelerate the development of intermediary business,and gradually diversify the income structure.This paper will examine whether the diversification of bank income structure can improve the bank's operating performance.This paper analyzes the basic status quo of commercial banks,analyzes the impact of income diversification on the business performance of China's urban commercial banks,and draws conclusions.In the specific analysis,the paper analyzes the relevant data of 48 city commercial banks from 2011 to 2017,and analyzes the impact of different indicators on the performance of commercial banks through multiple regression models.Through analysis,the diversification of banking business can reduce business risks and improve business performance,but the diversified business model is closely related to the policy environment,its business structure,management level,risk control ability and product innovation ability..Diversification of business operations requires a good policy environment.The important premise for diversifying business is the regulatory policy.In order to promote commercial banks to better implement diversified strategies,we should strengthen the construction of laws and regulations for diversified business supervision,gradually improve the regulatory system for diversified businesses,and strengthen the innovation business.Regulation,especially for high-risk businesses such as financial derivatives,puts risks within the control of the bank.