Research On The Impact Of Off Balance Sheet Business Development On Business Performance Of Commercial Banks

In terms of products and services,China’s commercial banks continue to explore the diversification of business beyond the boundaries of traditional commercial banks,and such diversified business expansion represented by off-balance sheet business provides a new channel for banks to increase income.The expansion of off-balance sheet businesses and the diversification of traditional revenue sources are changing the income mix of banks.Based on this,this paper will focus on the relationship between the development of banks’ off-balance sheet business and banks’ operating performance level.This paper studies the impact of off balance sheet business on business performance of commercial banks.Based on constraint induced theory,regulation avoidance theory and transaction cost theory,this paper analyzes that off balance sheet business affects the income level,risk level and development ability of commercial banks respectively.Secondly,it analyzes the development status of off balance sheet business of commercial banks in China through relevant data,and analyzes the current situation of business performance of commercial banks from two aspects of profitability and development capacity,uses the factor analysis method to determine the indicators of the operating performance of commercial banks.In order to give consideration to the comprehensiveness,representativeness and diversity of samples,this paper takes 5 state-owned commercial banks,8 joint-stock commercial banks and 3 city commercial banks as the research objects,and analyzes the impact of off balance sheet business on the operating performance through the empirical analysis method.It comes to the conclusion that the impact of off balance sheet business on banks,especially state-owned banks,is more prominent,and the proportion of off balance sheet business income increases under standardization,The contribution to PCB growth is significantly better than that of the non state control group.Equity ratio for non-state-owned banks,the profitability of this part of assets is better than that of state-owned banks;The size share(SIZE)of the sample group of state-owned banks has increased,and the contribution of PCB has decreased.The main reason is that the size of state-owned banks far exceeds that of non-state-owned banks and has a certain scale threshold.Based on the analysis of this paper,the following suggestions are put forward:strengthen the development of off-balance sheet business;Off-balance sheet business development model should be compatible with the size of the bank;Continuously optimize the asset structure of banks;Reasonable adjustment of off-balance-sheet business revenue structure.