Research On The Influence Mechanism Of Internet Finance On China 's Commercial Banks From The Perspective Of Relevant Business

In recent years, the Internet finance in China has developed rapidly and brought financial industry the new experience and competition. Nowadays the Internet finance has shown a variety of business forms, such as the wide spread financial products Alipay and Yuebao, which made a full range of impact on financial industry, especially on commercial banks. Yet the academic field has not make the conclusion whether the Internet finance is the substitute or supplement to commercial banks. But the impact of Internet finance on commercial bank directly reflected on the operational level. As the result, study about the influence of Internet finance on commercial banks is a very good way to find out whether the Internet finance is a substitute or supplement.The paper firstly reviews the domestic and foreign scholars on the definition of Internet finance and the impact it made on commercial banks. On the basis of this, the paper makes some preliminary judgments and analysis them through theoretical analysis and empirical ways.Through the analysis on the characteristics of Internet finance resource allocation and the changes of user utility indifference curve changes, the paper deduces the "substitute and supplement effect" that the Internet finance has made on commercial banks. After that, the paper makes a comparison of the business forms of Internet finance in China and USA. In china, the effect made by Internet finance is much greater than that in USA. This chapter analyzes such phenomena and gives out specific reasons. In the empirical part, we find out that the Internet finance has made directly influence on the deposits, loans, remittances and sales business in of commercial banks. Through the empirical analyze of internet finance’s advantages and function orientation of the four business types, we draws the corresponding conclusions in view of the influence that every kind of business brings.In the conclusion part, the paper concludes Internet finance products, such as Yuebao do have diversion effect on commercial banks, but its influence is limited. Moreover, P2P net loan is a supplement to the bank loan business, and the third-party payment business is a substitute. Besides, the Internet finance sales decreases from bank sales income, and is an alternative to commercial banks’channels. In the view of all the results, the paper finally gives suggestions on how commercial banks improve their four business forms, in order to realize the symbiosis with internet finance, better adapt the era development and provide more proficient services in financial industry.Through the analysis of the related business, the impact on commercial banks are described. In the process of development, the Internet finance not only affect commercial banks, but also have effect on brokerage, insurance and other financial institutions, its influence is very extensive. Commercial banks in China up to now, great achievements have been obtained, at the same time there are still weaknesses. The emergence of the Internet finance makes commercial banks begin to self-reflect and change. The Internet wave, self-improvement of commercial banks should be the norm, not only in the Internet finance times.The influence that Internet finance brings to the commercial banks is not thorough, and Internet finance institute cannot fully replace the commercial banks, both in functions on some business. There is possibility of coexistence between Internet finance and commercial banks. In addition, the existence of the Internet finance has deep significance. Internet finance reform of our country has a very good reversed transmission effect, overall, the Internet financial to optimize China’s financial industry to a certain extent. In addition to the positive role of financial markets, financial regulation for the Internet finance innovation also played a role in promoting. Therefore, integrated the above reasons, this paper argues that, in the regulation of the Internet finance issues, the government should encourage the development of Internet finance and prevent its risk at the same time.For Internet finance regulatory measures, "information regulation and financial supervision" is advocated. But in the early period, the government can take prudent loose regulatory attitude.