Study On The Impact Of Non-Interest Income On The Commercial Bank’s Risk In China

In the process of accelerating the process of marketization of interest rates, the sudden emergence of Internet Banking as the background, the face of high return expectations, compliance with safety requirements and increasingly competitive market environment, China’s banking sector is facing Interest and earnings decline, increased risk of a variety of challenges and competition into the need to change the traditional business structure and expand revenue streams, reducing the leverage of the new period of development. Development of the banking system’s income structure, both inland and abroad, the non-interest income business increasingly widespread attention as a new driving force banks income. However, risks in 2008 of the global financial crisis triggered by the U.S. subprime mortgage which non-interest income business also played an inglorious villain. In this context, this paper attempts to influence China’s non-interest income business of commercial banks operational risk on theoretical and empirical research.Firstly, in reference based on the non interest income of domestic and foreign scholars and commercial banks, define and sort out non-interest income, commercial banks and the concept of risk and relationships. To sort out the existing research results can be found, foreign commercial banks non interest income business has experienced first bank to reduce bank risk to increase the risk process. The Research on risk and non interest income of commercial banks business relationship is relatively small and the method is relatively concentrated.Secondly, China’s commercial banks to conduct a comprehensive analysis of the status of non-interest income, interest income, non relation and risk of commercial bank to do a qualitative analysis, combining theory found the existence of non-interest against whether the bank can increase or decrease the risk of force, so that by simple qualitative analysis theory difficult to draw valid conclusions.Third, the paper according to the system GMM model, select our 16 listed commercial banks from 2004 to 2014, non-interest income business impact panel data on Chinese commercial banks operating effectiveness of the establishment of econometric models and empirical analysis. From econometric models and empirical results can be found: a non-interest income business can reduce the risk of China’s commercial banking operations. Secondly, the listed commercial banks are divided into state-owned commercial banks and joint-stock commercial banks, both of which are empirical analysis found that non-interest income business can reduce the risk of joint-stock commercial banks, but the role of state-owned commercial banks is not significant. Third, in our existing four non-interest income, fee and commission income and investment income which will reduce the operational risk of commercial banks, the role of trading income and other income is not significant.Finally, China’s listed commercial banks non-interest income structure, development status and the results of empirical econometric model to measure the general effect of non interest income of commercial banks operational risk, combined with domestic and international economic environment, we put forward China’s commercial banks to expand their business channels, rational development of non-interest income to meet the new demands of operations, the establishment of new banking policies ecosystems.