Research On The Influence Of Non-Interest Income On The Competitiveness Of Commercial Banks

In recent years,under the background of interest rate marketization,financial disintermediation and financial market gradually opening to the outside world,the competitive environment of Chinese commercial banks has begun to deteriorate.Commercial banks are facing multiple pressures such as narrowing interest rate spreads,shrinking deposit and loan market and increasing competition among the same industry,and the traditional business model has been severely challenged.Commercial banks gradually realized that it was difficult to make profits by relying on deposit and loan spreads,and began to explore diversified management methods.According to the practical experience of western commercial banks,the development of non-interest income business is an important way to reform the income structure of commercial banks,and China's commercial banks will also carry out strategic transformation.Non-interest income accounts for less capital and is less affected by the economic cycle,meeting the transformational needs of commercial banks for light asset operations,but non-interest income is both diverse and complex.The benefits and increased risks brought by it to commercial banks are not clear,and the academic community has not reached a unified conclusion.Non-interest business also puts forward higher requirements on the ability of management and risk control of commercial banks,so even in the face of fierce market competition,commercial banks do not dare to carry out non-interest business hastily before they have an in-depth understanding of it.Expand non-interest income.Whether the development of interest income business of commercial banks can bring about the promotion of competitiveness,whether it can improve the efficiency of the use of commercial banks' funds,and save costs and other issues has always been the focus of attention in the academic community.This paper studies the relationship between non-interest income and bank competitiveness according to the past research on non-interest income,combined with the current domestic development situation and the business data of commercial banks.First of all,the concept of non-interest income is defined,and the relationship between non-interest income business and intermediate business,off-balance sheet business is defined.Through comparison,it is revealed that non-interest income has low cost,less capital consumption,and a variety of business types.The risk level is different,to the innovation ability request high characteristic.At the same time,this paper introduces the synergy theory,financial innovation theory and asset portfolio theory involved in the management process of commercial banks.Secondly,it introduces the development process and development of non-interest income in China,and analyzes the existing problems of non-interest income.Then it discusses the influence path of non-interest income on the competitiveness of commercial banks from the theoretical point of view,that is,non-interest income affects commercial banks through three aspects: income,risk and management.Thirdly,the related index data of 12 listed commercial banks in China during 2010-2017 are selected,and the evaluation system of bank competitiveness suitable for this paper is established on the basis of the existing evaluation system of commercial banks.From the profit ability,the cost control ability,the scale,the market occupation ability,the security,the liquidity,the growth seven major aspects constructs the competitiveness index system,establishes the random effect regression model.The impact of non-interest income on the competitiveness of commercial banks is empirically tested.The results show that non-interest income does not promote the competitiveness of commercial banks,the development of non-interest income business in China has just started,and non-interest income accounts for less,and has not played a role in enhancing the competitiveness of commercial banks;The ratio of cost to income,the size of assets and the ratio of non-performing loans have significant positive effects on improving the competitiveness of commercial banks.The ratio of deposit to loan can increase the competitiveness of commercial banks,but there is no significant correlation between them.Finally,it puts forward four suggestions on how to expand non-interest income business better: to increase the diversity of non-interest income,to gradually improve the technical application level of all kinds of business,to increase the innovation of intermediate business,to increase the innovation of intermediate business,and to improve the technical application level of all kinds of business.Strengthen risk control and optimization of non-interest business.