Analysis Of The Impact Of Non-interest Income On Systematic Risk Of China’s Commercial Banks

The global financial crisis of 2008 and the stock market crash in 2015 made the organizations and government departments aware that the entire financial industry and even the real economy are likely to be affected by the incalculable impact of financial institutions’ risk activities.In the context of accelerating interest rate marketization,decreasing deposit-loan spreads,increasing fierce competition in Internet finance,and further highlighting the phenomenon of financial disintermediation,the scale of non-interest income business,which is an important new way for commercial banks to obtain profits,has developed rapidly.This has led to an increase in the correlation between banking operations.Its impact on the security of the financial system deserves close attention from scholars.First of all,this paper analyzes the research conclusions of domestic and foreign scholars while exploring the current economic situation in China.After summarizing the domestic and international research results,it is found that the foreign perspective that the non-interest income will reduce the systemic risk of commercial banks has gradually changed to the point that it will increase the systemic risk of commercial banks.China is less and single in its study of the impact of non-interest income on the systematic risks of commercial banks.Secondly,this paper defines the definition of non-interest income and bank systemic risk,and analyzes their respective characteristics in order to lay the groundwork for the theoretical analysis below.Thirdly,Using the total non-interest income,growth rate and proportion of China’s 16 listed commercial banks from 2010 to2017 to analyze the development of non-interest income of Chinese commercial banks,and then comprehensively theoretically influence the impact of non-interest income on systemic risks of commercial banks.Analysis,and finally draw corresponding conclusions based on this and propose some targeted policy recommendations.By qualitatively analyzing the impact of non-interest income of commercial banks on systemic risks,this paper concludes that commercial banks continue to expand non-interest business while reducing some of the risks while also bringing systematic risks to the banks to some extent.Therefore,this requires the regulatory authorities to conduct more stringent prevention and control of the systemic risks of the banks.Theanalysis of the impact of non-interest income on the systemic risk of Chinese banks has very important practical significance for China’s commercial banks to improve their profitability,optimize the structure of non-interest income,reduce the systemic risk of commercial banks and even maintain the stability of the financial system.