Abstract:
For a long time, the commercial banks of China mainly rely on traditional spreads as a source of income. However, in recent years, along with the changes of the financial system and competition between domestic and foreign banks, commercial banks are actively seeking a broader source of income, and vigorously expanding non-interest income has become the main target of each big commercial bank. But improving non-interest income proportion can increase the profitability of commercial banks that still need to be studied in-depth. So this paper selects data from 16 listed commercial banks from 2005 to 2012 as a sample. By constructing data model for the relationship between non-interest income and bank business performance is analyzed. The analysis concludes that the non-interest income on the profitability of the state-owned commercial banks have not attained significantly positive effect, while having significantly negative effects on joint-stock commercial banks.