The Relationship Between The Income Structure And The Performance Of Bank

Increasingly complex global financial environment and increasingly fierce competition in the banking industry, China banks face the reality that deposit and loan spreads narrowed, various non-bank financial products Substitution Effect, targeted customers'diversified need, foreign banks'competition and the model effect of the developed financial markets. Our country began the journey of business diversification from 1990 and the income structure is also becoming increasingly complex. Either passive adaptation or active pursuit, we can predict revenue diversification will be the development direction of China's banks. In the past 20 years, the situation of income structure development and the relationship between the income structure and the bank earnings-risk level are worth conducting a summary. And this survey can give some significant guidance to the further development of the income structure of China's banks.This article introduces the index DIV to measure the degree of bank income diversification and index UN to measure the non-interest income's proportion, trying to find the relationship between the two indicators and the bank earning-risk level. This article covers a sample of 17 banks, and 11 listed banks. The data is from China Financial Statistics Yearbook 1991-2009, and CCER Financial Research Database. These data constitutes the unbalanced panel data. Using multiple regression model, we drawn the conclusion that in our current environment, pay more attention on the diversification of the revenue structure is not appropriate. And improving the efficiency of the savings and loan business is appropriate.In this paper, we give some policy advice on the improvement of the revenue structure of the banks. and at last we forecast some in-depth study which can be carried out in this area.