Abstract： The diversity of potential benefits is China one of the reasons for commercial banks to provide diversified financial services, is a strategic choice for commercial Banks and the key issue facing fierce competition. Based on 39 commercial banks of China in 2007-2014 data of model test results show that the financial reform measures the multiplexes, diversity and multidimensional, the relationship between bank performance and risk is diversification can improve performance when large commercial Banks may increase the risk of its bankruptcy, will improve the medium-sized commercial bank credit risk, impact on small scale regional commercial Banks almost non-existent. In the economic growth, momentum is insufficient, financial market liberalization step by step, under the condition of different sizes of Banks, should choose different diversified financial services, to changes in financial market credit and deposit and lending of the impact of net interest margin to reduce.
Keywords： income diversification; performance of commercial bank financial; reform model of the dynamic panel system; GMM