Author(s)

Haiqing Hu, Yan Liu, Lang Zhang, Cuicui Gang, Xian Feng

Corresponding Author

Yan Liu

ABSTRACT

Taking 18 listed commercial banks in China from 2013 to 2018 as samples, and from the perspective of non-interest income intermediation, this paper explores the impact on the profitability of commercial banks from four aspects: bank financial product innovation, service management innovation, technological level innovation and organizational structure innovation. The results show that: financial product innovation, service management innovation, technological level innovation and bank profitability are significantly negatively correlated. There is a significant positive correlation between bank financial product innovation, service management innovation, technological level innovation and non-interest income. The indirect effect of non-interest income between service management innovation and bank profitability is not significant, but there is a significant indirect effect between financial product innovation and technological level innovation, which is embodied as "suppressing effects".

KEYWORDS

Commercial banks; financial innovation; Non-interest income; Profitability; Suppressing effects