Research On The Impact Of The Income Structure Of China's Listed Commercial Banks On Operating Performance

For a long time,the listed commercial banks in our country have a good profitability due to the large interest spreads of deposit and loan,and the net interest income is their main source of income.In 2017,the net interest income of China s main listed commercial banks accounted for nearly 70%of their operating income.In recent years,the economic environment has changed a lot.Interest rate liberalization in our country pushed forward steadily in the past two decades,and the interest spreads of deposit and loan were constantly compressed;Besides,with the implementation of financial disintermediation,China's listed commercial banks'income from the interest spreads of deposit and loan have been greatly affected,and both of the growth rate of net interest income and operating income have declined.Over-reliance on net interest income is harmful to the long term development of China's listed commercial banks,they urgently need to expand business types and increase sources of income to cope with market changes?increase profitability and achieve sustainable development.Based on the above,this paper researches the impact of the income structure of listed commercial banks on their operating performance and puts forward reasonable suggestions for the optimization of income structure.First of all,this paper summarizes the related research findings both at home and abroad.Then,this paper makes theoretical analysis of the impact of the income structure of listed commercial banks on their operating performance.After that,this paper introduces the development status of the income structure of listed commercial banks through statistical data.Next,this paper sorts out the quarterly financial data of 14 listed commercial banks from 2008-2017,and sets up a panel data model to make empirical analysis of the impact of net interest and non-interest income of listed commercial banks on their operating performance.Besides,this paper subdivides net interest income and non-interest income and then studies the impact of components of net interest income and non-interest income on listed commercial banks' operating performance.Finally,this paper puts forward suggestions for optimizing the income structure of listed commercial banks in China combined with the research results.Through theoretical,current situation's and empirical analysis,conclusions are drawn as follows:Whether from the whole or the components,net interest income has a negative impact on the operating performance of listed commercial banks;Non-interest income has a positive impact on operating performance of listed commercial banks,and among its components,net fee and commission income have the greatest positive impact;The asset size of listed commercial banks is not as big as possible;Cost greatly restricts the improvement of operating performance of listed commercial banks.According to the research conclusions,this paper proposes some suggestions of optimizing income structure and improving operating performance,including improving loan quality,adjusting the structure of net fee and commission income,controlling asset size and so on.