Study On Non-interest Income Impact On The Performance And Risks Of Commercial Banks In China

Since the 2008 subprime mortgage crisis,commercial banks in the major financial world began to pay more attention to non-interest income business.In Europe and the United States,the commercial banks' non-interest income accounted for the proportion of total operating income even more than 40%,approaching 50%.The international economic and financial environment is changing.Commercial banks are facing a new macro financial environment,and in this case,the transformation of non interest income business is an important strategy that the global banking industry may adopt in the new financial situation.Because of different finanacial situation,scholars in the study of the impact of non interest income on banks do not classify the bank types,this may lead to the conclusion of the research is relatively broad.By studying the financial data of 29 commercial banks in China from 2006 to 2015,this paper divides our major commercial banks into large-scale commercial banks,joint-stock commercial banks and urban commercial banks,and analyzes the non-interest income impact on the performance and risks of three kinds of commercial banks in China.The result shows that for the three major commercial banks in China,the most suitable transformation for non-interest income business of commercial banks is for joint-stock commercial banks,to enhance the performance with a significant impact on the risk.While for the large commercial banks,result is the same as the latest International results,that non-interest income,although it will bring additional performance,but also lead to additional risks,so large-scale commercial banks need a reasonable transition.For urban commercial banks,due to the high degree of dependence of regional lending and borrowing,non-interest income's impact is not significant,neither on performance nor risk,so it should still be net interest income as the core business.Some suggestions are raised.