The Influence Of The Income Structure Of China’s Listed Commercial Banks On Its Performance

Since the 1980s,with the acceleration of the process of financial liberalization and the expansion of the application scope of financial technology development,the international banking industry has begun to transform and upgrade its banking business,began to gradually shifting from the traditional reliance on net interest income to the development of non-interest income business.Non-interest income accounts for a significant increase in the proportion of operating income,and it reaches 40%and above.In terms of the development of our country’s commercial bank,for a long time,our country’s commercial banks have been given priority to the traditional credit business.However,in recent years,with the basic completion of the reform of interest rate liberalization in our country,the phenomenon of financial disinter-mediation has become increasingly prominent.In addition,China has gradually liberalized the entry threshold of the banking industry,and various foreign banks,private capital banks,internet finance and other financial institutions have come a long way,which has further intensified the competition of commercial banks and continuously fed their profits.In this situation,the banks gradually recognized the necessity of adjusting the income structure,and began to adjust their business structure,in order to expand their income sources,and also actively promoted the development of non-interest businesses.From 1996 to 2016,the non-interest income of China’s banking industry proportion gradually increased from less than 6%to 26.6%,but there is a large gap compared with developed countries also.This article is studied under such background,this paper mainly studies the current situation of the income structure of commercial banks and the development of their business performance in China,and analyzes the impact of the income structure of commercial banks on their performance and the difference development of the income structure of different types of commercial banks and their impact on performance.In fact,there have been studies on these issues in the previous literature,but most of them are not comprehensive enough,and the analysis of the problems is incomplete.In this paper,through the combination of the specification analysis and the empirical analysis,each chart is applied comprehensively,and the panel data model is established to analyze and provide a reference for the rational adjustment of the revenue structure of our country’s commercial bank.It is mainly divided into six sections,mainly includes four sections:that first part mainly summarizes the relevant research achievements of the structure of domestic and abroad relate to the impact on the profitability of commercial banks,and analyses the related research background and significance of this paper.The second part mainly analyzes the current income structure of commercial banks and different types of commercial banks in China,and analyzes the characteristics of their income structure.The third part mainly analyzes the current situation of commercial banks and different kinds of bank’s management performance,and analyzes the relevant factors that affect the profitability of banks.The fourth part is mainly an empirical study,which analyzes the correlation between the income structure of 16 listed commercial banks and their performance in China.In this paper,ROA is mainly selected as the explanatory variable,which measures the profitability of the bank,and takes the ratio of net interest income(LX)and handling fees and commission income proportion(SXF)as the explanatory variable,and also selects the total assets scale(LNAT),and expense ratio(COST),non-performing loan ratio(NPL)and GDP growth rate(GDP)as the control variables to comprehensively analyze the influence of various factors on the performance of commercial banks.Finally,the relevant policy suggestions are put forward based on the relevant empirical results to promote the optimization and upgrading of the income structure of commercial banks in China,and promote the steady improvement of the performance of commercial banks.The main research conclusion of this paper is that the current income structure of commercial banks in China is relatively single,still give priority to interest income,and non-interest income is relatively low,and the development of different types of commercial banks is not balanced.In view of that empirical part,our country commercial bank’s net interest income proportion are negatively correlated with ROA,and the fees and commission income proportion are positively correlated with ROA,and fees and commission income has a higher impact on performance than the interest income.In terms of classification banks,the fees and commission income of state-owned commercial banks and joint-stock banks has a higher impact on performance than urban commercial banks.At the same time,commercial banks will also be affected by assets,operating expenses,non-performing loans and so on in the transformation of income structure.Based on these,it is recommended that,at the current stage,our commercial bank should continue to develop the traditional interest income and maintain it at a suitable level,so as to strengthen the innovation,actively expand non-interest income share,increase the investment of talents and technology,and enhance the control of related costs and the prevention and control of related risks.