Study On The Improvement Of Non-interest Income Management Scheme Of BH Bank

With the financial liberalization and the wide application of computer technology in the commercial banking industry,commercial banks in Europe,America and other western countries have taken the lead in developing non-interest business represented by fund sales,securities intermediation,investment banking and insurance intermediation on the basis of the traditional intermediary business of banks,through the management and diversification of integrated financial services and strategic alliances of various financial institutions,and are mainly active in securities,insurance and trusts,etc.non-banking business areas.Today,the business structure of commercial banks has undergone significant changes,with non-interest income accounting for an increasing proportion of the income structure of commercial banks and becoming an important source of income for commercial banks with continuous growth.In China,due to the "separate operation and separate supervision" business model of the financial industry,for a long time,the main income of commercial banks came from the interest rate spread between deposits and loans.However,with the continuous reform of interest rate marketization,especially after China’s accession to WTO,China’s financial market has been opening up to the outside world year by year,and some foreign banks have started to enter the Chinese market with high value-added non-interest business,which has a certain negative impact on the deposit and loan spreads of Chinese commercial banks,and the corresponding interest income has been declining while their deposit and loan business has been continuously impacted,which in turn has restricted the rapid growth of commercial banks’ income.The rapid growth of commercial banks’ income is also restricted.In addition,taking into account the "post-epidemic" era and the decline in lending rates,the traditional deposit and loan interest rate differential has led to a continuous reduction in operating profit.Therefore,how to develop non-interest business to improve the profitability of commercial banks is an important issue that needs to be solved in the development process of commercial banks.This paper takes BH Bank’s non-interest business as an entry point,objectively compares the development process of BH Bank’s non-interest business,studies and summarizes the successes and shortcomings of BH Bank’s non-interest income business,and discusses the deep-seated reasons that affect or restrict the healthy development of BH Bank’s non-interest income business through horizontal and vertical comparative analysis,and combines the successful experiences of China Merchants Bank and Pudong Development Bank in expanding their non-interest income business.We also discuss the deep-seated reasons that affect or restrict the healthy development of BH Bank’s non-interest income business,and propose measures and improvements to improve the management of BH Bank’s non-interest income business in light of the successful experiences of China Merchants Bank and Pudong Development Bank in expanding non-interest income business.The problems revealed by BH Bank in the development and management of non-interest income business can be said to be a microcosm of China’s commercial banks in the development of non-interest income business,and the research results on BH Bank’s non-interest income business can provide a reference for China’s commercial banks in the development of non-interest income business.In this paper,non-interest income is divided into commission income,investment income and loss,foreign exchange income and other business income,and the specific contents of each are introduced in detail.Although the non-interest business of Chinese commercial banks has grown to a certain extent in recent years,they still account for a relatively small proportion of the total operating income of Chinese commercial banks.Among the non-interest income,more than 70% of it is contributed by fee and commission income.This paper follows the research line of summarizing the current situation,identifying problems,analyzing them,making suggestions and improvement measures.This paper firstly compares the existing research literature on non-interest income at home and abroad,so as to clarify the research ideas and research directions on BH Bank’s non-interest income business.From the third chapter of this paper,the development and current situation of BH Bank’s non-interest income is reviewed and summarized,and the problems and causes in the development of BH Bank’s noninterest income business are focused and explored through comparative analysis,and finally the conclusions obtained are as follows,taking into account the actual needs of national financial supervision and existing financial theories:(1)From the current situation of BH Bank’s business income development,certain progress has been made in terms of business income,non-interest income,growth rate of non-interest income and structure of non-interest income.The development of noninterest income can meet the new challenges of interest rate market development,adapt the business model to financial disintermediation,and is also the best way to increase its own profitability and improve bank security.(2)This paper analyzes the current situation of BH Bank’s business and noninterest business with other national joint-stock commercial banks and finds that BH Bank’s non-interest income still differs significantly from other national joint-stock commercial banks in terms of the scale of non-interest business,the growth rate of noninterest income and the structure of non-interest income.(3)Through the analysis of the problems and reasons for the development of BH Bank’s non-interest business,it can be roughly analyzed that BH Bank has certain gaps with the head joint-stock banks in terms of internal structure,business segmentation,marketing and promotion,risk management,and professionalism of non-interest business,neglecting the expansion of non-interest business due to the pressure of listing,lacking effective understanding of customer demand for non-interest business,lacking overall customer The bank has failed to diversify its non-interest business due to its lack of effective understanding of customer needs for non-interest business,lack of overall customer management strategy,insufficient ability to assess customer needs,and insufficient understanding of marketing and promotion to the general public.Other problems include insufficient awareness of risk control in noninterest activities and underestimation of the role of employees in developing noninterest activities.(4)To summarize the problems and causes,BH Bank proposes general ideas for developing noninterest activities and specific measures to improve employees’ professional services by changing business philosophy and development methods,implementing differentiation,strengthening supervision and risk control,and improving employees’ professional services.