Research On The Influence Of Non-interest Income On The Business Performance Of Commercial Banks Under The Background Of Interest Rate Liberalization

With the commercialisation of interest rates,commercial banks can no longer rely solely on traditional interest income from deposit and loan intermediation to support their development.In view of the increasing competition between commercial banks,the continuous development of the internet and the deepening of financial intermediation processes,the expansion of the non-interest income business is the only option for the long-term development of commercial banks.At present,compared with other more rapidly developing countries,Chinese commercial banks have many shortcomings in the development of non-interest income,such as short time,slow speed and uniform diversification,while compared with developed foreign countries,Chinese commercial banks’ non-interest income is based on the net income available from fees and commissions,and non-interest income other than fees is less developed,indicating that there is an internal imbalance in Chinese commercial banks’ non-interest income.This indicates that there is an internal imbalance in the non-interest income of Chinese commercial banks,which has serious consequences for the sustainable development of commercial banks.The problem studied in this paper is essential to develop non-interest income and overcome the problems in the development of non-interest income business,so as to improve the performance of commercial banks.In order to empirically test the main theme of the paper,i.e.the impact of non-interest income on the performance of commercial banks,this paper uses unadjusted panel data of 16 listed commercial banks for an 11-year period(2011-2021)and a two-way fixed effects model for regression analysis.The empirical results show that an increase in the non-interest rate of return of commercial banks can significantly improve the profitability and safety of commercial banks,but has no significant impact on the liquidity of commercial banks.On the other hand,from the perspective of the structure of non-interest income,an increase in the share of net income in fees and commissions can significantly improve the profitability and safety of commercial banks,but reduces their liquidity and is therefore not the best type of non-interest income to develop.In contrast,increasing the share of non-interest income derived from intermediation can significantly improve the "triple bottom line" of commercial banks,thereby improving their performance.It is therefore important that commercial banks focus on increasing the share of non-interest income in order to optimise their internal structure and thereby improve their performance.