Research on the Impact of Non-interest Income Innovation on Bank Performance

Commercial banks have been dealing with a more complex business climate recently. Joint-stock commercial banks are more inventive than other banks since they have some unique characteristics when compared to other banks. The influence of the most recent initiatives concerning non-interest income on bank performance is becoming more evident. The author thinks it is important to investigate how joint-stock banks' non-interest income impacts their financial performance. First of all, this paper's literature review reveals that there are varying views on the connection between non-interest revenue and commercial banks' performance. Second, it is discovered that there are both positive and negative effects between non-interest income and bank performance based on the analysis of its internal structure and current circumstances. To further understand the relationship between the two, empirical research is necessary. The author then decides to conduct empirical study using panel data on 8 joint-stock banks between the years of 2012 and 2020.We may now go back and look at the precise relationship between the two after the data description and stability test reveal that the research data is generally stable. Reviews then uses the data to create the regression model. The robustness test that the author used to make the regression results more accurate and rigorous revealed that the variables still support the original finding. As a result, the author draws the conclusion that joint-stock commercial banks’ non-interest income is closely correlated with bank performance.