Research On The Impact Of Non-interest Income On The Risk Level Of Commercial Banks In China

In recent years,along with the gradual establishment and improvement of the interest rate market mechanism,the rapid progress of Internet finance and the increasingly serious phenomenon of "financial disintermediation",the net interest margin of banks is getting smaller and smaller.If commercial banks want to maintain their profitability and competitiveness and achieve sustainable development,they have to look for a new profit growth point,and non-interest income is the ideal way out.Commercial banks can indeed improve their operating margins through the development of non-interest income business,but there are inevitably certain uncertainties in such business,which may bring some risk potential to the operation of commercial banks.Therefore,exploring the impact of non-interest income on the risk level of commercial banks is of great significance to the healthy development of non-interest income business and the quality development of commercial banks.This research firstly explains the relevant concepts,summarises and composes the existing literature at home and abroad,and summarises the current status of relevant research.Secondly,it introduces the development history of non-interest income of commercial banks in China and analyses the development status.Once again,the theoretical basis and the analysis of the influence mechanism are used to put forward the research hypothesis and to pave the way for the empirical analysis.In the empirical analysis,the data of 32 listed commercial banks in China over a 10-year period are taken as the research sample,and a two-way fixed-effects model is used for regression analysis.The following conclusions were drawn: firstly,non-interest income can reduce the risk level of commercial banks;secondly,there is variability in the degree of influence of different types of non-interest income in the segmentation structure on the risk level of commercial banks;thirdly,in the process of non-interest income influencing the risk level of commercial banks,market competition has a moderating effect and will weaken the negative effect of non-interest income on the risk level of commercial banks;fourthly,China Fourthly,there is an optimal proportion of non-interest income for commercial banks in China,and the risk diversification effect of non-interest income is best when the proportion is 42%;fifthly,the impact of non-interest income on the risk level of banks varies according to the nature of banks,with large state-owned commercial banks and national joint-stock commercial banks being able to suppress the risk level by increasing the proportion of non-interest income,while the impact of urban commercial banks is The impact is not significant.Finally,based on the results of the empirical analysis and the reality of the development of non-interest income of commercial banks in China,this paper puts forward some relevant suggestions from two perspectives: commercial banks and the regulatory level respectively.At the level of commercial banks: further increase the proportion of non-interest income in operating income,optimise the structure of non-interest income,improve the level of comprehensive risk management and enhance information disclosure.At the regulatory level: strengthen the classification and supervision of non-interest income business and improve the regulatory system,set reasonable thresholds to guide healthy competition in the banking industry,deepen financial reform and encourage commercial banks to make reasonable and appropriate innovations in non-interest income business.