| China’s financial market implements separate management policies, for a long time the sources of income of commercial banks rely mainly on net interest income,, the income of commercial banks has great differences in the revenue structure with the banks of Western developed countries. In1980s, the innovation、 new technology and international financial environment promoted international banking sector to witness tremendous changes, European banks have invested heavily in the development of non-interest income business to seek new profit growth point, in2001, the proportion of non-interest income accounted for revenue of Us and European Banks is close to50%. The Us and European large Banks are more proactive in non-interest income. In recent years, the domestic market began to change, the financial sector penetration gradually strengthened, financial dis-intermediation is highlighted. Towards the diversification of business development at present, China’s financial structure, financial products and financial tool innovation promote the securities, trust and insurance institutions for direct financing business to the society, carve up the commercial bank loan market, weaken the ability of bank financing to the society, and compress the banking profits space. Commercial banks face other non-bank financial industry challenges and market competition. At the same time, the commercial bank interest rate is into the deeper reform. In July2013, People’s Bank of China released on further notice to push forward the reform of marketization of interest rate that People’s Bank of China decided to cancel the regulation of financial institutions lending rate, it is will undoubtedly what have important effect on the interest rates in the market. For deposits and loans to attract customers, Banks will gradually increase the savings rate, lower lending rates, which further reduce the net interest income.To the face of complicated financial markets and the mixture of overall environment, the development of Chinese banking industry began to actively to break the original pattern, adjust the structure of bank’s income. After joining the WTO, the central bank allowed commercial banks to be in cross operating. With the easing of the financial environment, financial tools and product innovation, China’s commercial banks is bound to seize this opportunity to be in positive transformation, adjust its business structure, expand non-interest income business to make their win in the competition in the financial liberalization. In2007, the financial crisis made alarm for the entire financial sector. Now, banking risks are more widespread concern, the major developed countries or regions invest considerable funds and staff to study the relationship between non-interest income and bank risk. However, the results did not reach agreement. And, a considerable part of our non-interest income business is out of banks’balance sheets, and with a certain degree of risk, the study of the relationship between non-interest income business and operating risk level of banks has important value. Therefore, a study on this issue in this article has important practical significance. Meanwhile, domestic research literature is less. Early, the studies were main from the perspective of qualitative analysis. Then Chinese scholars began to focus on the relationship between interest income and non-interest income and the volatility of each. Only recently there are some researchers to focus on the relationship between non-interest income and risk by using empirical study. However, there are different results. Therefore, the study of this paper can enrich the aspects of the theory to make important theoretical significance.In2006, CBRC divided the core of the commercial bank’s risk index into three levels. The level of risk is based on point data, is a kind of static index; Risk migration is to measure the change of asset quality, is the dynamic indicator; Risk only fill is the ability to measure risk of commercial Banks to cover losses, including profitability, reserve adequacy and capital adequacy in three aspects. Thus, for the commercial bank’s risk supervision, CBRC considers the profitability and capital adequacy ratio.In2013,the financial stability report pointed out that our country at present have mature conditions of establishing deposit insurance system, the central bank is to speed up the construction of deposit insurance system. On the one hand, the establishment of the deposit insurance system, can improve the operating environment of the commercial Banks in China, and create a fair for the banking industry and competition environment; On the other hand, this means that China will allow commercial Banks bankruptcy, commercial banks take risks. Under no deposit insurance system in the past, countries bear the risk of commercial Banks, commercial Banks for its operating risk control consciousness is not strong, not actively to adjust the risk. Nowadays, if being in mismanagement, the value of risk is too high, banks will lose the protection of the state, and will be automatic out of banking market. At the same time, the China banking regulatory commission has said brewing bank bankruptcy ordinance.To be given, this article considers the bank profitability, capital sufficiency and bank bankruptcy, and choice the bank bankruptcy Z-score to measure the risks of commercial Banks, which the past research is measured by the standard deviation of return on assets. To bank bankruptcy inverse Z-score, I transform Z-score for IZ, so the IZ value increases, the commercial Banks has a high risk. This article selects five state-owned Banks and nine joint-stock Banks as the research sample. Not only I study the effect of non-interest income to commercial Banks risk from the overall, but also from the Angle of the state-owned Banks and joint-stock Banks to analyze the relationship between them.The article uses the norms and empirical analysis, qualitative and quantitative analysis. Firstly, the paper expounds the theoretical basis for development of non-interest income. Secondly, to have a more clear understanding of the content of non-interest income of our country, I analyze the define the concept of non-interest income. Thirdly, I analyze the development characteristics and risk transmission mechanism of non-interest income. Fourthly, by using the theory of portfolio to study the relationship between non-interest income and risk for making preliminary judgment; Finally, making empirical research by panel data model. Sample datas are from China financial statistics yearbook bankscope database and sample bank’s annual report. The time are selected from2002to2012, this paper adopts three years rolling average method for data processing for the irregular changes of smoothing and in order to calculate the IZ value, the datas of other variables are for the rolling average of three years, so I construct new panel data.Through analyzing the development of non-interest income in China present situation and the empirical study of being relationship with the bank’s risk, The article draw some conclusions:(1)The non-interest income scale increases largely in China, but is still in a low level of non-interest income accounted;(2) Due to business development in China is late,the non-interest income in our country mainly concentrated in the low-end products, and handling fee and commission business is a leading business.(3) Chinese commercial Banks’non-interest income volatility is higher than net interest income volatility.(4) The increase of non-interest income can reduce the management risk of the bank.(5) The effect that state-owned commercial Banks to carry out the non-interest income business for reducing its operating risk is more apparent than joint-stock Banks.(6) Professional team is not completed, especially in the joint-stock Banks. |
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