Research On The Impact Of Financial Products Of Commercial Banks On Business Performance

With the rapid development of our country's economy and the improvement of people's living standard,the increase of residents' income makes them have the demand of wealth management.The deposit business of banks obviously can't meet the needs of residents,so in recent years,the wealth management products launched by banks have become the most commonly accepted wealth management needs of residents.When commercial banks issue financial products,they can first attract investors to invest,because financial products are relatively flexible compared with deposits and treasury bonds,with shorter time limit and higher income;secondly,they can help banks increase the channels of debt business and accelerate the pace of transformation;finally,the most important factor can provide their own income and performance.However,issuing wealth management products will also bring operational risks to banks.For example,if the yield is too low,customers will be lost and their own interests will be reduced,or the capital adequacy ratio will be insufficient due to the unclear business.Therefore,it is of practical significance to study the influence mechanism,factors and degree of financial products on bank performance.Based on the data of 18 representative banks in China from 2014 to 2018,this paper selects 11 average return on total assets,cost income ratio,return on capital,deposit and loan ratio,current ratio,capital adequacy ratio,debt to asset ratio,non-performing loan ratio,total asset growth rate,total profit growth rate,capital maintenance and value-added ratio according to the "three nature" operation principle and growth principle of banks Index,using principal component analysis to measure the comprehensive performance value of silver every year.Taking the types of income structure,income index value and term structure of financial products issued by banks as explanatory variables,using panel data model to make regression analysis of bank performance,using control variable method to test single variable and multi variable respectively,to study the impact relationship and the degree of impact between them.Through the empirical analysis,it is concluded that non guaranteed financialproducts and short-term limited financial products have a greater impact on performance in terms of single variable,business income indicators have a positive but not significant impact on performance,and in terms of multi variable,non guaranteed financial products have a more significant impact on performance,while the requirements on term are not very strict.Based on the conclusion,this paper puts forward some opinions and suggestions,including reasonable allocation of product structure,strengthening innovation,risk prevention and control,strengthening supervision and guidance,upgrading marketing mode and services.