The Influence Of Non-Interest Income On The Performance Of Chinese Commercial Banks

In recent years,domestic commercial banks' internal and external business environment is more and more complex.The main body of bank interest business is affected with the rapid development of capital market and financial science and technology.The third party agencies rise ceaselessly,the domestic environment of commercial banks increasingly serious.With the accelerating of internationalization,foreign banks are pouring into,making the original interest business disadvantage,so the banks in urgent need of transformation,and to increase the investment in non-interest business.By studying the relationship between non-interest income and bank operating performance,this paper hopes to provide theoretical support for the development of non-interest business of China's commercial banks and give appropriate suggestions to commercial banks.Based on the summary of previous literature,this paper found that the development of non-interest income business of large banks and small and medium-sized banks had inconsistent effects on their own performance,so it was assumed that the relationship between non-interest income business and bank performance would be affected by the bank's own size.On the basis of the above,this paper selected the data of 14 commercial banks with different natures from 2006 to 2017 to conduct an empirical study on the relationship between non-interest income and bank operating performance.In order to distinguish the impact of the size of commercial banks,the threshold model is introduced and the bank asset size is set as the threshold variable.The empirical results show that the relationship between non-interest business and bank performance is affected by the bank's asset size,and the non-interest business proportion and bank performance have a non-linear relationship.When the asset size is less than a certain value,the increase of non-interest income proportion will reduce bank performance.When the asset size is larger than a certain value,increasing the proportion of non-interest income will improve bank performance.After preliminary empirical research,the result of the second empirical above a certain size of bank assets of state-owned banks to separate research and change the threshold variable,it is concluded that the state-owned banks to carry out the non-interest business will be affected by the influence of the proportion of non-interest business itself,thus to bank the diminishing marginal benefit of the nonlinear impact on performance.