The Research On The Impact Of Market Concentration And Non-interest Income On The Risk Of Commercial Banks

With the continuous promotion of financial reform in China,the market structure and income structure of the banking industry have undergone qualitative changes.While the market concentration of the banking industry is constantly decreasing,its income structure is also changing to focus on both interest income and non-interest income.In recent years,the chaos of interbank business,financial management business and off balance sheet business has become prominent.The CBRC has issued a series of policies to strengthen risk management and control,and the regulatory environment has gradually tightened.Based on the above background and the domestic and foreign research,this paper aims to study the impact of the change of market concentration and the growth of non-interest income on bank risk.Firstly,this paper reviews the definition of market concentration and non-interest income,summarizes the current situation of market concentration and non-interest income,and then analyzes the impact path of market concentration on bank risk,the impact path of non-interest income on bank risk and the impact of market concentration on non-interest income risk effect.In the empirical part,this paper selects 18 listed banks in China from 2007 to 2017 as research samples for panel data regression analysis.The empirical results show that:(1)the decline of market concentration significantly reduces bank risk;(2)the increase of non-interest income significantly increases bank risk,in which the proportion of commission income and investment transaction income also significantly increases Increase bank risk;(3)from the perspective of bank scale,the increase of non-interest income significantly increases the risk of state-owned banks and joint-stock banks,the increase of commission income significantly increases the risk of joint-stock banks,and the increase of investment and transaction income significantly increases the risk of state-owned banks;(4)with the gradual reduction of market concentration,the increase of commission income has an impact on banks The marginal positive effect of risk will become more and more obvious.Finally,combined with the current situation and empirical results,this paper provides some reference suggestions for the in-depth reform of China's banking industry,The purpose is to optimize the banking market structure and income structure as much as possible to reduce the risk of commercial banks and improve the stability of their own operation.