Research On The Impact Of Non-interest Income On The Operating Performance Of Commercial Bank

With the deepening of interest rate marketization and the development of digital finance,China’s financial formats are gradually enriched,which has caused a certain impact on the traditional business of commercial banks,and the way interest differential as the main source of profit has been challenged unprecedentedly,coupled with the downward pressure of the overall economy,the profit margins earned by the traditional business model of commercial banks have been narrowing,and the operating risk coefficient faced by them has also increased.In order to promote the structural transformation and upgrading of business,different types of commercial banks promote the expansion of non-interest business in a stable and orderly manner according to the existing asset scale and development plan,providing sufficient source power for the diversified income of commercial banks.However,with the multiplication of risk levels and costs,the combined impact is different.Therefore,this paper explores how the business performance of commercial banks is affected by non-interest business,and analyzes the development trend of non-interest business,which has important reference significance for the development of commercial banks.This paper first sorts out and analyzes the literature on non-interest income and commercial bank performance by domestic and foreign scholars,systematically introduces the conceptual connotation of non-interest income and commercial bank operating performance,and the theoretical basis of research and analysis.Secondly,the current development status of non-interest business of domestic commercial banks is summarized,and the influence mechanism is analyzed.Thirdly,the factor analysis method is used to integrate the comprehensive performance indicators and then start the empirical analysis test,and the financial data of 33 commercial banks in the decade from 2012 to 2021 are selected to construct a panel regression model to study the relationship between the two.Finally,according to the test of the model,it is concluded that for the whole sample of commercial banks,the non-interest income significantly improves the performance of commercial banks.For state-controlled commercial banks,the overall impact of non-interest income on their performance is not significant,but the increase in the proportion of internal component fees and commission income has a negative impact on their operations,while the change in fair value is conducive to the improvement of performance.For joint-stock commercial banks,non-interest income as a whole is not highly related to the operation of commercial banks,but fees and commissions can significantly improve their performance level.For urban and rural commercial banks,the increase in the proportion of non-interest income can significantly positively affect the operating performance,while the proportion of investment profit and loss and other business income in the components will have a significant impact on the bank’s performance,and the remaining non-interest income will not have a significant impact.Finally,through qualitative and quantitative analysis,this paper puts forward corresponding suggestions and enlightenment based on the perspective of commercial banks and regulators,combined with policy practice orientation,economic environment,scale differences of commercial banks,and talent training.