Research On The Impact Of Non-interest Income On The Risks Of China's Listed Commercial Banks

The banking industry is an important pillar of China's financial industry and has played an important role in China's economic development.Commercial banks are the backbone of the banking industry and occupy a dominant position.Over the years,with the deepening of China's interest rate liberalization reform,the spread between deposits and loans has gradually decreased.With the continuous development of Fintech,more financial participants have been spawned,and the phenomenon of China's financial disintermediation has become increasingly significant.The sharply shrinking profit margins of commercial banks make them face new challenges.The innovation and change of business models have become the main tone of the development of commercial banks in the future.China's banking industry can no longer rely on a single interest business as a support,but must work hard to adjust its business model and turn its attention to a new source of profit growth,namely non-interest business.Inevitably,new opportunities are accompanied by new risks.While banks rely on new non-interest businesses to gain more profits,they also face a variety of complex risks.The financial crisis is a warning to the financial markets of various countries.Over-developed financial liberalization and business complexity will exacerbate individual risks of banks,exacerbate the mutual transmission of risks,and cause potential crises to erupt.Therefore,it is necessary to explore the impact of non-interest business on the risk of commercial banks.This article takes the quarterly data of 14 commercial banks in China from 2008 to 2018 as a total sample,and cuts in from the perspective of bankruptcy risks.It combines the two aspects of non-interest income overall and non-interest income structure to comprehensively examine the impact of non-interest income on risk of banks.First,the panel threshold model of Hansen is used to explore the non-linear influence of the asset scale of commercial banks on the relationship between the two.Second,the use of balanced panel models to explore the impact of non-interestincome components on bank risk.The empirical results show that,commercial banks with relatively large asset sizes(assets larger than 0.54 trillion yuan)can develop non-interest businesses to diversify banking risks.Assets are relatively small(assets smaller than or equivalent to 0.54 trillion yuan)for commercial banks to carry out non-interest business will increase bank risk;The net fee and commission income in the structure of non-interest income can diversify the risks of commercial banks,while investment income,exchange gains and other business income has significant negative impact on bank risk,and can increase bank risks.The fair value changes has no significant impact on bank risk.