Research On The Impact Of Financial Innovation And Income Structure On Bank Profitability

Financial innovation is an important means for commercial banks to effectively enhance their core competitiveness and profitability.In the current increasingly competitive environment of the domestic banking industry,how to improve the profitability of commercial banks has become an important subject for scholars.This article uses 18 listed commercial banks from 2013 to 2018 as a sample to empirically analyze the impact of financial innovation of commercial banks on the bank's income structure and profitability,and study the income structure including net interest margin and non-interest income in this relationship.Intermediary role.The study draws the following conclusions:on a macro level,the financial innovation level of banks can be measured and measured by four aspects:financial product business innovation,banking service management innovation,banking technology level innovation,and internal organizational structure innovation;factors in each aspect corresponding to different banks It is not completely consistent with the final comprehensive innovation level.The financial innovation level of state-owned banks is generally higher than that of joint-stock banks,and the financial innovation level of joint-stock banks is generally higher than that of listed listed city commercial banks,which is closely related to the development level of the banks themselves In addition,from the perspective of the bank's income structure,the comprehensive level of financial innovation contributes to the improvement of the net interest margin,and the non-interest business income of the bank declines due to the reasons that innovation may generate high additional costs;from the perspective of bank profitability See,no matter what kind of innovation,it will lead to the improvement of bank profitability through direct or indirect paths.Empirical evidence confirms that under the in termediary role of net interest margin,its influence relationship will be strengthened,and the indirect effect performance of banks' non-interest business income For a "suppressing effects" Finally,the research on the lagging intermediary model shows that the current and first-order lagging net interest margin levels have a significant full mediation effect on the relationship between the first-order lagging bank's financial innovation level and bank profitability,regardless of whether it is The current period is still a first-order lagging non-interest income.The relationship between the level of financial innovation and the profitability of banks is not obvious.The above conclusions fully show that financial innovation will affect the bank's profitability by affecting the bank's income structure,in particular,the impact of net interest margin will change more significantly.Therefore,commercial banks should innovate in a timely manner,vigorously develop an innovation model that matches the current development situation,and moderately improve the bank's income structure from different aspects through new contemporary innovation paths in order to comprehensively improve the bank's profitability.