Based on a sample of 36 listed commercial banks in China between 2010 and 2018

and People’s Republic of China: Financial System Stability Assessment released by the IMF

a panel data model based on clustering robust standard error is adopted to study the impact of the rise of the non-bank financial sector on the profitability of commercial banks. The study finds that the development of the non-bank financial sector has significant negative impact on the business performance of commercial banks. Meanwhile

the improvement of the macroeconomic situation

the higher level of economic monetization

and the increase in industry net interest income have enhanced the business performance of commercial banks

and the expansion of bank assets

the rise of unit revenue cost and the deterioration of credit assets quality have negative impact on the business performance of commercial banks. In addition

the study also finds that the rise of the non-bank financial sector has greater impact on the business performance of state-owned banks and urban commercial banks than that of joint-stock commercial banks. Finally

the article puts forward suggestions on decision-making for the sustainable development of China's commercial banks from the perspective of financial technology.