A Study On The Factors Of Non-interest Income Of China's Commercial Banks

With the development of internet communication technology,the gradual relaxation of financial regulation,and the revolution of the globalization of finance and economic,the traditional deposit-and-loans business of the commercial bank has been affected deeply.To coping with the shock,some banks in western country have engaged in developing the non-interest business,which proved to be effective.Compared with the commercial banks in western developed countries,the income and profits of commercial banks in China comes from the interest spread of traditional business,only a small proportion coming from non-interest business.In recent years,non-interest income business has developed rapidly in China,as more commercial banks have realized its importance.Some commercial banks launched new products of non-interest business according to characteristics of their own,and achieved certain success.Therefore,to study the development and influential factors of non-interest income of commercial banks in China is in favor of optimizing the structure of business and developing noninterest income business according to their own situation for Chinese commercial banks.It is also of great theoretical and practical significance.Based on the concept of non-interest income and the development of theoretical basis,this paper first introduces the characteristics of non-interest income which are different from the traditional interest income,and expounds the present situation of non-interest income business in commercial banks.This paper also pointed out the problems in development of non-interest income in China.According to these problems,this paper classified the factors which influence non-interest income in China's commercial bank into two categories: internal and external factors,then discussed the categories in more details.In the empirical study,this paper selects the annual report data of 5 commercial banks in China from 2010 to 2015 as samples,and makes a panel data regression analysis on the relationship between non-interest income and various influencing factors.Based on the results of the analysis and the present situation of China's banking industry,this paper draws the following conclusions: the non-interest income of commercial banks in China is relatively low,and the sources of non-interest income is relatively simple.Although the development of non-interest income in China's commercial banks is in a growth stage overall,the bank doesn't come into the competitive competence in this business area.In addition,after an empirical analysis of the factors influencing the non-interest income of commercial banks,this paper holds that the non-interest income is positively correlated with asset scale,while negatively correlated with net interest margin and cost-income ratio.Based on the result of empirical study and actual situation of China's economy and financial market,at the end,this paper put forward some suggestions in order to develop non-interest income better in China's commercial bank.Firstly,commercial banks should pay attention to the impact of non-interest income and expand business scale.Secondly,banks should make full use of resources accumulated before,and make use of traditional business to develop non-interest business.Thirdly,in the income structure,commercial banks should optimize their non-interest income structure and take a new path of innovation.Fourthly,governments and commercial banks should jointly build a favorable environment for a better development of non-interest income business.