An Empirical Study On The Factors Affecting Non - Interest Income Of China 's Listed Commercial Banks

Since the1970s a series of major changes had been happened in the operating environment of western commercial banks, including the relaxation of the financial regulation, the development of capital market, the widely used of financial technology, which left a vulnerable position for the banks as traditional financial intermediary. In response to the challenge, the western commercial Banks had started the transformation of business, set off a wave of developing non-interest income business. By taking advantage of the form of financial holding group, the west commercial banks’ non-interest income ratio reached45%, which made it an important profit way. In recent years, the changing of market environment, the fierce of market competition, the financial disintermediation, the enhancement of financial management consciousness of residents, especially as the further promote of marketization of interest rate and the appearance of the internet financial in2013all make our banking face unprecedented pressure to survive, which is just the same as the western commercial banks before. We are facing the choice, what we should do is to develop the non-interest income business, which becomes the industry consensus.At present, there is still academic debate about whether the non-interest income business really can improve the level of operating performance of China’s commercial Banks or not. However, the common recognition has been settled down about the development lever of non-interest income business in our country is relatively low, therefore, to explore the influence factors of non-interest income and put forward countermeasures for opinion at this stage is necessary as well as urgent.Except the introduction part, the full text is divided into three parts. First of all, the definition and classification of non-interest income have been made, which is to summarize the main characteristic of non-interest income.Still,the analysis is around the present situation of non-interest income business development.By descriptive statistical analysis of the non-interest income business volume and the internal structure of the16listed Banks from2007to2013, found that although total non-interest income growth in China is good since2007, they are still insufficient, and the internal structure is still imbalance.What’s more, there is a theoretical analysis from two aspects:the external environment and internal features of the influence factors of non-interest income, in order to correspond with the empirical part of the paper. In the empirical part, this article mainly embarks from the micro main body, selected the logarithm of total assets, LDR, net interest rate of return, deposit ratio, return on assets, cost income ratio which representing the size of Banks, liquidity risk, the profitability of traditional business, traditional business relations with customers, profitability and cost control ability.By using the gross domestic product (GDP) as control variables, regression results which has been made by fixed effect panel data model from eviews7.0show that the factors were significantly except the traditional business relationships with customers. In order to refine research further, the overall sample is divided into five major state-owned Banks and11other joint-stock Banks according to the nature of the Banks, to return and analyzes the causes of differences. Finally, this paper summarizes the research conclusion and on this basis puts forward policy recommendations of developing our country commercial bank non-interest income, from five improvement measures including the strategic adjustment, non-interest income internal structure adjustment, customer relationship maintenance, the cost of revenue management and the use of electronic information technology direction.In this paper, two aspects of development has been carried on. On the one hand, samples have been divided into state-owned Banks and other joint-stock Banks to study the differences of influencing factors from the viewpoint of internal characteristics of the bank. On the other hand,in the background of interest rate marketization and the rapid development of the Internet the empirical data was updated, and provides corresponding suggestions according to the different nature of the bank for the further development of non-interest income. But there are many deficiencies, this paper does not include the city commercial banks which booming recently based on availability and accuracy of data, the analyzing is incomplete.At the same time, due to the lack of knowledge and practical experience, specific suggestion measures isn’t deep enough, further supplementary analysis is still needed.