A Study On The Influence Of Internet Monetary Fund On The Profitability Of Commercial Banks

In 2013,Alibaba United Tianhong Fund in Alipay on the launch of the "Yuebao" business as the representative of a variety of Internet monetary fund products in large numbers.Ali,Tencent,Baidu and other Internet giants have begun to layout this field,the traditional industrial form is being spoiled,which also have a direct impact on the traditional business of the domestic banks.This paper firstly analyzes the concept,operation mechanism and characteristics of Internet Monetary Fund,and introduced the development of the Internet Monetary Fund in the financial product business of the bank in the form of case analysis.Under this background,then make the theoretical analysis of the impact of the Internet Monetary Fund on the profitability of commercial banks,the commercial banks’ deposit business and wealth management business as the starting point of analysis,the analysis found that the development of the Internet Monetary Fund would erode the part of bank’s scale of profit and liabilities,raise the cost of access to bank funds,thereby affecting the profitability of the deposit business;Internet Monetary Fund would also reduce the bank consignment of financial products fee income and the available income of the self-financing products retail,raise the the cost of financing,thereby weakening the profitability of bank financial management business.In order to ensure the accuracy of the analysis,this paper uses the model in the next chapter to test the theoretical analysis of the above results.First,build a a model to determine whether the Internet Monetary Fund has an impact on the bank’s profitability and the extent of its specific impact,on this basis,use the sensitivity analysis to verify the Internet money fund on the commercial bank deposit business profitability;The VAR effect,the Granger causality test,the impulse response function and the variance decomposition are used to verify the influence of the Internet Monetary Fund on the profitability of the financial management of commercial banks.Empirical test results show that the development of the Internet Monetary Fund produce a greater degree of negative impact.to the bank’s profitability.Some commercial banks in a certain proportion of substitution of the Internet Monetary Fund,not only to make its capital acquisition costs increased significantly,and even has a strong impact to its deposit and loan spreads profit model;And the yield of Internet money fund products will have a positive impact on the yield of bank financial products,weakening the profitability of bank financial management business.Finally,according to the results of theoretical and empirical analysis,this paper puts forward the corresponding suggestions on the future coping strategies of banks from the three aspects of deposit business,financial management and innovation transformation.