The Influence Of Derivative Financial Instruments On Bank Performance Research

Financial innovation is not only promoting global financial liberalization, and adds toglobal financial market vulnerability.With China’s accession to the WTO and the progressof marketization, the competition of each commercial bank become unprecedentedfierce.On the one hand, the traditional profit model of our country commercialbank,depends on the Loan interest spread, can’t adapt to this competition, and thewestern commercial bank possess advanced service, software and hardware equipment,electronic level, the network technology used widely in the financial system, in thefinancial derivatives products have the absolute advantage, On the other hand, thederivatives is like a double-edged sword, it in the transfer of risk evasion and at the sametime, also can produce new financial risk, and financial derivatives itself holds enormouspotential danger and the bank financial derivatives business watch of external and increasethe difficulty of supervision. To maximize the value of driving listed Banks, improve thecompetitiveness of the bank itself, promote the profit model of the diversification ofderivative financial instruments to study the influence of bank performance is in theprocess of development bank necessary theory.In this background, this paper first describes the hedging theory, investment incomeuncertainty theory and risk theory through the theoretical basis of the full text always; Andthen to14listed in our country commercial bank as the research object, by the derivativesof interest income generated for be explained variables, with a statistical analysis ofinterest income derived financial instruments to the influence of the bank performancetrend; The last is divided into two parts again the stepwise regression analysis, discussedthe financial derivatives of interest income and bank performance correlation, financialderivatives revenue and the correlation of bank risk, and combined with the empiricalresult and the actual situation of the Banks in China. Through to the2008-2010, during the14Banks in their annual report released in about financial derivatives and bank related tothe performance of the data and the index system analysis, and based on using Excel andSPSS11.0analysis software, eventually got the result shows that use derivatives to bankperformance has a certain impact, but not significant, in short, the bank can influence inincome structure of the foundation, on the Banks of the cash flow affect, or financialderivatives in reducing Banks risk while, can improve the performance of the bank, such research methods to use derivatives to improve the investment bank, has enormouseconomic benefits.