Study On Impact Of Non-Interest Income And Its Structure On Operating Performance Of Commercial Banks

In recent years,the orderly operation of interest rate liberalization,the trend of more and more intense financial disintermediation,the rapid development of the Internet finance industry and the aggressive outbreak of COVID-19 pandemic have all impacted the model of commercial banks relying on traditional deposit and loan business to obtain operating profits.In the face of this situation,the common practice of commercial banks in developed countries is to promote the reasonable change of bank income structure and promote the improvement of operating performance by expanding non-interest income business.China’s commercial banks also urgently need to learn from this scientific practice to realize their own transformation and upgrading.Although the development of non-interest income business can help commercial banks get rid of the dilemma of slow development of the original credit business,it also adds more uncertainties to the sustainable operation of commercial banks.Therefore,it is necessary to study the impact of non-interest income and its structure on the business performance of commercial banks,and to promote the sustainable and high-quality development of China’s banking industry.This thesis is based on theoretical research,combined with the corresponding empirical analysis,first of all,this thesis combines the domestic and foreign related literature,defines the non-interest income and business performance concepts,introduces the theory of diversification,scope of economic effect,the theory of asset portfolio and financial innovation theory development process,and prepares for this research.Secondly,the method of factor analysis is used by selecting the financial data of 16 Chinese commercial banks in the decade from 2011 to 2020 to construct the comprehensive business performance indicators from the three dimensions of profit status,risk control ability and growth status.From the two dimensions of non-interest income overall and non-interest income structure,the model is constructed with the operating performance of commercial banks respectively.The comprehensive business performance index is taken as the explained variable,the proportion of non-interest business income,fees and commission income,investment business income,and other non-interest business income are taken as explanatory variables,the asset size and cost income ratio are introduced as control variables,and regression analysis of panel data is carried out.The following conclusions are drawn: Firstly,the operation of non-interest income promotes the improvement of the operating performance of commercial banks.Secondly,there is a significant positive correlation between fees and commission income business and the operating performance of commercial banks.Thirdly,the investment business income and other non-interest income have no significant impact on the business performance of commercial banks.Fourthly,for different types of commercial banks,the impact of non-interest income and its structure is different.Finally,specific suggestions are put forward on how to operate the non-interest income business in the future.