An Empirical Analysis Of Non-Interest Income And Performance Of Commercial Banks

With the gradual advancement of interest rate marketization and the deepening of financial dislocation in the world,the traditional financial industry of commercial banks is no longer dependent solely on the profit model of deposit and loan spreads,and began to seek other than interest income model,and actively carry out diversification,to face the interest rate market,spread tightening,strict supervision,intense competition and other challenges.Based on the previous studies,this paper makes an empirical analysis on the financial data of 16 listed banks in China,and explores the mechanism of non-interest income on the performance of commercial banks and puts forward some suggestions on the empirical results.This paper briefly reviews the research directions and conclusions of non-interest income on the performance of commercial banks by combing the existing literatures.On the basis of summarizing the predecessors' conclusions,this paper analyzes the data of commercial banks from 2007 to 2016,and divides the research objects into two types: large state-owned commercial banks and joint-stock commercial banks.The empirical results show that for large state-owned commercial banks,the higher the proportion of non-interest income is,the more unfavorable to the improvement of bank performance.For the joint-stock banks,non-interest income accounts for some significant correlation with bank performance.On the basis of summarizing the empirical results,this paper analyzes the conclusions and puts forward some suggestions.