An Empirical Analysis Of The Impact Of Intermediary Business Income On The Performance Of City Commercial Banks

Under the influence of such comprehensive factors as the continuous maturity of computer network and mobile technology,the rapid development of internet finance,interest rate liberalization and the increasingly relaxed access conditions for foreign banks,commercial banks with traditional business as the main business have been greatly impacted.Compared with national banks,city commercial banks still have a certain gap in profitability and sustainable development capacity.In particular,the profit model of relying on deposit and loan spreads makes them more vulnerable to the double impact of economic downturn and interest rate liberalization.The situation is grim.City commercial banks can only change the traditional business model,expand the intermediary business,increase the proportion of intermediary business income,and carry out strategic transformation in order to comply with the requirements of the era of financial innovation.In addition,due to the strict regulatory financial background,city commercial banks are actively seeking diversified profit models,paying more and more attention to the development of intermediary business,and trying to develop intermediate business as the main source of income.However,expanding the intermediary business of city commercial banks and making the income structure more diversified can improve business performance,which requires further empirical investigation.The proportion of intermediary business in operating income and the diversification of income structure are effective indicators for measuring the intermediary business of city commercial banks.This article is based on data from 10 city commercial banks in different development regions in China from 2007 to 2017,incorporate these two indicators into the model to analyze the impact of intermediate business income and segmented sub-business on business performance,it provides an important basis for the city commercial banks to develop a diversified business strategy.The empirical analysis concluded that the development of the intermediary business has significantly improved the business performance of the city commercialbanks;The settlement business and the agency commissioning business have a significant positive impact on the business performance of the city commercial bank,and are different,the bank card business has inhibited the improvement of the business performance of city commercial banks,the guarantee commitment business did not pass the significance test.Finally,this paper proposes countermeasures for how to promote the healthy and orderly development of the intermediary business of China's city commercial banks:Under the premise of strengthening supervision and integrating regional economy,city commercial banks should focus on realizing the capital increase and expansion of intermediary business,the adjustment of the intermediate business structure,but not blind expansion,should take advantage of local economic characteristics and its own operating characteristics,combined with risk and income to carry out reasonable and appropriate expansion,in order to drive the rapid growth of the overall business income of the city commercial banks,bring more financial support for sustainable development.