Research On The Influence Of Non-interest Income On The Performance Of Chinese Commercial Banks

With the development of interest rate marketization and the deepening of economic system reform,the rapid rise of capital market and the emergence of a large number of innovative financial products have seriously affected the traditional business model of China's banking industry.Therefore,to actively carry out various non-interest businesses and promote the diversification of income sources is the strategic purpose of the sustainable operation and development of China's banking industry.Therefore,it is of great practical significance to study the correlation between non-interest income,internal components of non-interest income,diversification of business income and bank performance.In this context,data of 28 listed Banks from 2009 to 2017 were selected as samples to explore the correlation between noninterest income and performance.This paper first analyzes the development of non-interest income in China,and then discusses the problems in the development of non-interest income.Secondly,for the measurement of bank performance indicators,in order to make the selection of performance indicators more comprehensive and scientific,indicators are selected from the four perspectives of Banks' profitability,liquidity level,safety status and growth status,and factor analysis method is adopted to conduct comprehensive measurement of the performance level of Chinese Banks.Then,based on relevant theoretical basis and literature,a dynamic panel data model is established to study the impact of non-interest income on bank performance from the perspectives of non-interest income as a whole,non-interest income internal composition subdivision and income diversification.Finally,based on theoretical and empirical analysis,this paper proposes relevant policies and Suggestions for domestic commercial Banks to carry out non-interest business.The research shows that Banks' expansion of non-interest income can promote their performance.Fees and commissions business income,investment business income is the main source of non-interest income,is to improve the bank performance level.Other non-interest income is greatly affected by the market environment,with high risks and volatile income sources,which is not conducive to the improvement of bank performance.The higher the degree of diversification of bank income,that is,the more types of non-interest income,the more beneficial it is to improve bank performance,disperse risks and reduce operating costs.For state-owned commercial Banks,non-interest income accounted for the correlation between performance and not significant,the only other non-interest business income increase of the ratio helps performance level of ascension,so on the premise of guarantee the stability of traditional interest business development,also want to reasonable to expand non-interest business,broadened the source of profits,enhance the level of its international operation.For joint-stock and urban commercial Banks,the increase of the proportion of non-interest income has a promoting effect on bank performance.Commission and commission business income is the main source of income for their non-interest business.While steadily operating commission and commission business,it is necessary to broaden its categories and promote the diversified development of business mode.