| With the rapid development of Internet finance,the traditional banking business has been adversely affected.Internet finance with advantages like low threshold and low-cost that commercial banks can’t compare,began to squeeze the payment and diverse the deposits of commercial banks.In the face of the challenges of Internet finance,commercial banks may actively lay out the Internet banking business,and forced to relax the credit standards.And risk control has become an important issue.At the same time,with the interest rate marketization,the diversification of financial markets,the diversification of financial products,the deepening of the individuality of financial needs of clients,it’s a wise choice for commercial banks to actively realize the diversification of profits to cope with the change of credit scale and the decrease of net interest margin of deposit and loan.Therefore,the impact of diversification of bank income and development of internet on bank risk are the problems that banks must consider when faced with fierce competition.There are different conclusions about the relationship between the diversification of commercial banks’ income,development of Internet financial and risk of commercial banks base on research of both in China and abroad.This has brought doubts to the diversification strategy of China’s commercial banks,and has brought challenges to the supervision of banking regulators.However,the current achievements in the research still await perfection.Firstly,the empirical study on the impact of Internet finance on bank risk is very scarce,and it hardly distinguishes the external an internal impact of Internet finance on commercial banks.Secondly,the impact of Internet finance on the traditional business may force commercial banks to transform from relaying on the spread of income to diversified channels.The existing empirical studies rarely consider the interaction effects of diversity of income and Internet finance on the risk of commercial banks.Based on the existing research,this paper considers the interaction effect of internet finance and income diversification on bank risk,and tries to examine the impact of internet financial development both from external and internal perspectives,so as to verify the relationship between the diversification of commercial banks’ income,the Internet financial development and commercial banks and provide a reference for further research on the risk of commercial banks.Based on the panel data of 13 listed commercial banks in China from 2010 to 2015,this paper make regression analysis of state-owned banks,joint-stock banks and all 13 banks respectively,and studies the impact of diversification of income and Internet finance.In order to ensure the validity of the empirical results,this paper conducts the tests of multiple collinearity,heteroskedasticity and endogeneity,and makes the corresponding treatment.By changing the estimate of the explanatory variables,estimate of the variables and estimate method of the model,this paper proved the robustness of the results.This paper draws the following conclusions:Income diversification will reduce the risk of state-owned banks and increase the risk of joint-stock banks;Development of internet banking will increase the risk of state-owned banks and joint-stock banks;Development of Internet financial enterprise will reduce the risk of state-owned banks and joint-stock banks;The interaction effect of income diversification and Internet finance will increase the risk of state-owned banks and joint-stock banks,but has a greater impact on joint-stock banks.The greater the degree of diversification of income,the more likely the Internet finance to increase the bank’s bankruptcy risk;the higher the degree of development of the Internet finance,the more diversified income is easier to increase the bank’s bankruptcy risk,income diversification and Internet financial development together increase the bank’s bankruptcy risk.The above conclusions are beneficial to commercial banks to better understand the impact of Internet finance and income diversification on different type of bank,so as to better control their own risks and complete the transformation and upgrading.In view of the research results,we put forward the following suggestions for the risk control of commercial banks:(1)Do not blindly pursue the diversification of income.Since diversification of income will increase the risk of joint-stock banks,joint-stock banks should pay special attention to the risk of new business and try to configure businesses with low correlation at the same time.(2)Implementation of diversification should depend on the bank’s scale and professional advantage.For the state-owned banks,they should take advantage of their scale advantages,while the joint-stock banks can consider a more personalized and more professional direction.(3)Coordinate the implementation of the Internet banking and income diversification strategy.Banks should scientific match their financial innovation business with the appropriate Internet Financial form,to reduce the interaction effect that increase the bank risk.This paper expands the existing research on the impact of the diversification of income and the impact of Internet finance on the risk of commercial banks,and has the following innovations:(1)Constructng diversified indicators based on the construction of the Hafdale-Hirschman index a(HHI),which is a more realistic reflection of the bank’s income diversification.At the same time,non-interest income is also used as the income diversification index to to verifying the robustness of the regression results.(2)This paper examines the impact of Internet financial development on bank risk from both the external and internal perspective.(3)This paper also takes into account the interaction effect of Internet finance and income diversification,and fills the gap of relevant empirical research results. |
