THE IMPACT OF NET INTEREST SPREAD, NET INTEREST INCOME RATIO AND COST TO INCOME RATIO ON BANK PERFORMANCE IN CHINA’S COMMERCIAL BANK

Abstract

In recent years, with the acceleration of interest rate liberalization and the development of online banking, bank revenue agencies face great challenges, and Chinese commercial banks are not profitable. In order to propose suggestions for optimizing the income structure of commercial banks, this paper focuses on the impact of changes in income structure on the performance of commercial banks. Based on the analysis of previous research results, this paper first summarizes the theory of the impact of income structure on business performance, and then combines theory and practice, analyzes the status quo and changes of the income structure of China's five listed commercial banks. The second is the use of spss for empirical analysis of five commercial second-hand data from 2011 to 2016. An empirical study of the impact of China's commercial bank revenue agencies on their operating performance. The empirical results show that, in general, the net interest margin income of commercial banks has a positive impact on business performance, non-interest income also has a great impact on business performance, and cost income also has a positive impact on commercial banks. Finally, according to the theoretical and empirical analysis results, suggestions are made for the optimization of income agencies, such as the rational development direction of commercial banks, the development of non-interest income, and the strengthening of internal bank management.