An Empirical Study On The Effect Of Non-interest Business On Commercial Bank Performance

For a long time, the traditional interest income has always been the main source of bank’s income in China. In order to keep up with the big pace of market-oriented interest rate, bank industry competition becoming increasingly fierce, China’s commercial Banks gradually raise the proportion of non-interest income.In recent years,vigorously develops the non-interest business has become the consensus of the Chinese commercial Banks. On the other hand, with China’s financial market opening up and a large number of foreign banks entering in, Chinese banking increasingly fierce competition. In the face of the profit pattern of foreign Banks advanced and superior management level, how to complete the goal of profit maximization in the fierce competition become common for Chinese commercial Banks.In general, the emergence of new things are both opportunities and challenges.Some scholars believe that the development of non-interest income is conducive to stability in the banking income and improve bank performance, but there are some hold the opposite view. How is the effect of non-interest business of commercial banks performance in the end, and whether non-interest income growth can raise the level of performance, to be done in depth.In the domestic academic circles, there are many contradictions between the conclusions drawn from the research of many scholars. Therefore, through the analysis of China’s commercial banks in recent years of data,we can identify dependencies and development of the law between the non-interest income and performance in commercial banks, which provides the beneficial reference for the commercial banks in the development of non interest business process. The research contents are as follows:first chapter: introduction. The second chapter: Theory Review and reference. The third chapter: the theory analysis of non interest business and bank performance. The fourth chapter: performance measurement of commercial banks. The fifth chapter: the empirical analysis of the influence of non interest business on Commercial Bankperformance. The sixth chapter: research conclusions and suggestions.Based on thought : the theory to the empirical, from empirical to conclusions suggest research, this paper adopts literature reading method and empirical approach to study on the effect of non-interest business on commercial bank performance.Specific say : firstly, based on predecessors’ theory, it clear definition and classification of non-interest income of commercial banks;Second, deemed China’s 16 listed Banks as the research sample, selected the data from 2008-2014, from the asset management capabilities, profitability, solvency and development ability.we obtain commercial Banks performance by factor analysis method; Finally, Finally, selecting w that obtained from chapter 4 that represent a measure of bank performance as explanatory variables,using bank non-interest income accounted for banks operating income ratio that is a measure of NIIR as explanatory variables, selecting,),(GDPCIRASSETLN as control variables, by constructing the model regression analysis,we explore the relationship between commercial banks non-interest income and its components and between bank performance. The results showed that the development of commercial bank non interest business helps to improve the performance of the bank, the fee and commission income and transaction net income and bank performance a negative correlation, the return on investment and bank performance showed significant positive correlation. And then put forward the proposal that is conducive to the development of non-interest income business: commercial banks need to continue to develop non-interest income business, to complete the income structure transformation of commercial Banks.