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A Study on the Impact of Non-Interest Income on Commercial Banks Performance
- 1 Institute of Finance, Dongbei University of Finance & Economics, Dalian, 116000, China
* Author to whom correspondence should be addressed.
Abstract
With an upsurge of interest rate marketisation and internet finance, the role of commercial bank revenue in China's non-interest sector is turning more significant in terms of the bank's operating performance. From 2017 through 2021, the study explores the relationship between non-interest revenue and operating performance in business banks. Simultaneously, the article explores the various degrees of influence of three forms of non-interest revenue on operating performance and compares non-interest income variances on operating performance amongst banks with different equity natures. The empirical data show that non-interest income from commercial banks beneficially effects on their profitability; the proportion of fees and commissions contributes more to the profitability; and the impact on operating performance is more pronounced for state-controlled and joint-stock banks than for urban and agribusiness banks. As a consequence, commercial banks should pursue other businesses aggressively in order to diversify non-interest income sources and play a role in bank operations.
Keywords
non-interest income, commercial banks, business performance
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Cite this article
Zhao,L. (2023). A Study on the Impact of Non-Interest Income on Commercial Banks Performance. Advances in Economics, Management and Political Sciences,53,85-92.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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Volume title: Proceedings of the 2nd International Conference on Financial Technology and Business Analysis
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