Research On The Differences Of The Effects Of Commercial Bank's Intermediary Business Income Level On Business Performance

In recent years,due to the slowdown of economic growth and the continuous advancement of interest rate liberalization,China's commercial banks' revenue capacity has been strongly impacted,their profitability on traditional deposit and loan interest margins has shrunk,operating income and net profit,etc.The indicators also showed a significant decline.However,in the midst of rapid development in recent years,the intermediate business has been gradually regarded as the focus of business transformation by various banks.However,the state-owned banks and joint-stock banks and city commercial banks are not the same in their own scale of assets,business methods and market positioning,and there are also significant differences in the income level of the intermediary business.Whether blindly expanding the income level of the intermediary business will surely obtain the best performance of the business is a question worth studying.This paper analyzes the relationship between the income level of intermediary business and the operating performance of commercial banks in China by analyzing the effect of the proportion of commercial bank intermediary business income on the measurement of business performance.Firstly,we analyzed the status of the development and business performance of the sixteen banks during the period of 2007-2016,followed by fifteen indicators that measure the performance of commercial banks,and measured the operating performance scores of sixteen banks using factor analysis.Values,then using the operating performance score value as the explanatory variable,the proportion of commercial bank intermediary business income as the explanatory variable,and the panel data model were introduced to study the influence of the intermediate business income level of different types of commercial banks on business performance.The empirical results show that when there are different types of banks,there are two opposite trends in the impact of intermediary business income on business performance.The intermediary business income of state-owned banks has a positive effect on business performance,while the intermediary business income of joint-stock banks and city commercial banks is Performance shows inhibitory effect.After adding the secondary variables of the proportion of intermediate business income to the original model,it is found that the impact of the intermediary business income of commercial banks on business performance does not show a single promotion or suppression effect,but increases with the proportion of income from intermediary services.The inverted U-shaped trend was presented,and based on this result,a moderate interval of 17.01%-21.33% of intermediate business income levels was estimated.After further introducing the intermediate business revenue structure and operating performance scores into the model study,based on the scale and structure of the intermediate business development,the authors proposed the principle of compliance and appropriateness for the development of the intermediate business and the targeted optimization and improvement of the intermediary business income and products.Structure and other suggestions.