The analysis of relationship between diversified income structure and risk in Chinese commercial banking industry

This dissertation examines the relationship between diversified income structure and risk in Chinese commercial banking sector. Applying a panel data from 15 listed Chinese commercial banks during 2012 and 2016, this study uses qualitative research methods (based on previous literature and theories), quantitative research methods (by using Individual Effects Model in regression analyses), descriptive analysis method and comparative analysis approach (comparing the condition of different types of commercial banks), to reach a conclusion that diversified income structure would significantly increase bank risks, and the influence of diversification on various types of Chinese commercial banks are different. Finally, combined with the current situation of Chinese commercial banks' income structure, this paper proposes several suggestions to improve the performance of Chinese commercial banking industry