The Impact Of Non-interest Income On The Performance Of China's Listed Commercial Banks

For a long time,in our country the biggest contribution to the bank's operating income is the net interest income,but with the interest rate marketization,the influx of foreign banks,increasingly stringent capital regulation,financial liberalization and the rapid development of Internet banking,the traditional business management of commercial banks is facing the unprecedented challenges,the situation is serious.Under these circumstances,only through the development of the traditional business revenue has been unable to meet the needs of our bank's own development,major banks have attached importance to the development of non-traditional business(non-interest income business)which almost does not occupy the bank's own funds,diversification of development.However,the non-interest income business will be affected by the market environment,there are certain hidden dangers,so the commercial banks whether should actively expand non-interest income business,how the development of non-interest income business will affect the level of bank management,there is no unified conclusion.This paper uses qualitative and quantitative methods to explore the impact of non-interest income on bank performance.Firstly,this paper introduces the concept and classification of selected non-interest income as well as the concept of bank performance and the selection of performance evaluation index,and theoretically analyzes the impact mechanism of non-interest income on bank performance.Then,from two aspects of the overall development of non-interest income and the internal structure of non-interest income analysis the development of non-interest income of the state-owned commercial banks,joint-stock commercial banks,city commercial banks.By observing the trend of non-interest income ratio and ROA of 16 listed commercial banks from 2006 to 2015,guesses the relationship between non-interest income and ROA,and makes corresponding assumptions and empirical analysis.This paper selected 16 listed commercial banks in China,from 2006 to 2015 total of ten years of data,building a panel data model to study the effects of non-interest income on ROA,the bank's own data sources are the annual reports of listed banks,the Wind information financial terminal,and the GDP growth rate data sources are the OECD data base.In the study,the sample banks are divided into three sample groups,sample group of state-owned commercial banks,sample group of joint-stock commercial banks and sample group of city commercial banks,with shareholder equity ratio,the natural logarithm of the total assets,and the GDP growth rate as control variable,to study the impact of non-interest income on bank performance.The results show that non-interest income is negatively related to the performance of state-owned commercial banks and joint-stock commercial banks,which is not significantly related to the performance of city commercial banks,and briefly analyzes the reasons for these results.Finally,combined with the current development of non-interest income and empirical analysis results to the China's commercial banks manager to make recommendations,such as adjust its internal structure,attention to product innovation,brand service,differential treatment of non-interest income business.