Diversified Operations And Non-interest Income Impact On The Performance Of Chinese Commercial Banks

Under the background of China's increasing openness to the outside world and economic globalization,the long-term adoption of net interest income dominated by commercial banks in China has not been able to meet the long-term development of the future.It is necessary to change a single business structure,carry out innovative business and develop.Diversify to seek new profit growth points.Then,is the diversification of commercial banks beneficial to the improvement of business performance,or is it conducive to the reduction of operational risks,and what development strategies should commercial banks need to develop to promote performance improvement and risk reduction? In addition,domestic commercial banks are Differences in scale and so on are quite different in terms of business development.Are there differences in the results of diversification of banks in different categories? These are the issues that are currently being addressed.In order to better answer the above questions,this paper firstly reviews the domestic and foreign related research on the diversification of commercial banks,introduces the related concept theory of diversification,and based on this,defines the diversification of commercial banks.The status quo of development is detailed and sorted out.Then,this paper takes 18 Chinese listed commercial companies from 2007 to 2017 as a sample,adopts panel data model,selects Huffin Darhl index HHI method to measure the diversification degree of commercial banks,bank performance ROA as the explanatory variable,and will be listed in China.Commercial banks are divided into large state-owned banks,joint-stock banks and city commercial banks,and carry out regression analysis on three different types of commercial banks.Finally,the paper puts forward corresponding policy recommendations based on the results of current situation analysis,theoretical research and empirical test.The study finds that the positive impact of diversification on China's overall commercial banks is not significant,but diversification can significantly increase the performance of large state-owned banks,joint-stock banks and city commercial banks,and the positive impact of state-owned banks and the positive impact of joint-stock commercial banks.The degree is: 0.0899 > 0.0310 > 0.0260,indicating that the effect of diversification on the performance improvement of large state-owned banks is more obvious.The impact of non-interest income on China's overall commercial banks is not significant,but the proportion of non-interest income has significantly reduced the performance of China's large stateowned banks,joint-stock banks and city commercial banks,and the negative impact of state-owned banks,joint-stock commercial banks The degree of negative impact and the negative impact of city commercial banks are: 0.0796 > 0.0444 > 0.0261,indicating that the negative effect on the performance reduction of large state-owned banks is more obvious.