An Empirical Study On The Influence Of Non-interest Income On Profitability And Risk Of China Listed Commercial Banks

For a long time,China's commercial banks' profit model and business composition are mainly based on the traditional deposit loan gap,the business structure is relatively simple,and the business innovation is also insufficient.Due to the gradual opening of financial markets and gradual liberalization of market,foreign banks have entered the China market.The development of non-banking institutions such as securities,trusts,public and private funds,and the Internet financial industry such as Alipay,Jing Dong finance and Yi Xin have been greeted by the development of spring.These have all had an impact on the banking industry which was popular with the past,and the bank's deposit and loan space is getting smaller and smaller.Banks are forced to innovate their business and transform their overall profit model.However,everything in the world has the characteristics of double-sided nature.It is no exception to carry out non interest business.Income is bound to be accompanied by risk,so is non-interest income.In the process of changing the business scope of commercial banks to non interest business,the expansion of business scope,the diversification of income sources and the transformation of income structure will affect the profitability and stability of commercial banks;The increase of the proportion of non-interest income can improve profitability or stability,which is not necessarily applicable to all banks.This is also a controversial research area.For example,in 2008,there were many famous institutions in the financial field,such as Merrill Lynch,Washington Mutual Bank,Goldman Sachs,Lehman and so on,which suffered heavy losses or even went bankrupt;the marketization of interest rates launched in 2013,the bank bankruptcy insurance system launched in May 2015 and other measures will gradually break the rigid cashing of banks,and the Marketization Mode of selffinancing and self-management is the next step Direction.National credit is no longer the bank's foundation.If commercial banks are as Insolvent as enterprises,they will terminate their operations and carry out liquidation as enterprises.The status of commercial banks is becoming stronger and stronger,and it is also the direction of the reform of commercial banks in our country.It is an important force with outstanding strength in the banking industry in our country at present.It is of great significance to study the impact of non interest business on the profitability and stability of listed jointstock commercial banks,as well as for the future operation of commercial banks in China.Therefore,this paper selects the listed joint-stock commercial banks in China as the object of study,empirical research finds that the increase of the proportion of noninterest income will reduce the profitability of joint-stock banks,but the development of non-interest income is not significant for the stability of joint-stock banks.Finally,based on the results of empirical research,this paper puts forward corresponding policy recommendations for the development of non interest income business of commercial banks,combining the status quo,theoretical analysis and empirical research conclusions.