| Large state-owned banks enjoy perfect corporate governance, sufficient capital, multiple sales outlets, abundant professional talents, good channel construction and absolute advantages in indirect financing market; while rural financing institutions enjoy geographic advantages and network advantages, and relying on numerous basic outlets, their businesses cover the vast rural financing market that even includes remote mountainous areas in the west. Stuck between state-owned banks and rural financing institutions, small and medium-sized commercial banks own regional characteristics and part of loyal customers. Except medium-sized commercial banks like China Merchants Bank, Shanghai Pudong Development Bank, China CITIC Bank and municipal commercial banks like Bank of Beijing, Bank of Nanjing and Bank of Ningbo that have been listed, most of these small and medium-sized commercial banks are suffering from the reforming problems at corporate governance, under capitalization, regional limitation, talent scarcity, etc.On the basis of data collection and document retrieval, relevant theories have been classified and mainstream financial economists’ basic thoughts about internet finance and development theory of commercial banks also have been summarized for this topic. Upon defining the meaning of internet finance and analyzing main business pattern of internet finance, the relationship between internet finance and the development of small and medium-sized commercial banks in China has been normatively analyzed. Based on summarizing the development status of medium-sized commercial banks and main characteristics of internet finance in China, mathematical model or econometric model has been established to make empirical analysis on the influence made by internet finance to the development of small and medium-sized commercial banks. Finally, some general countermeasures and suggestions have been given as banking financial institutions can take use of the advantages of internet finance to build a more flexible exchange mechanism upon online finance and revolution of business division, so as to realize co-existence and mutual development. |
