Analysis On The Influencing Factors Of Financial Products Yield Of Commercial Banks

Commercial Banks are very common in our daily life nowdays.Commercial bank financial products are new and widely popular which have higher incomes from investment as well as higher risk compared to the savings generally.The yield fluctuation of financial products is affected by various factors,including the product types as well as all kinds of economic factors.Since 2005,the Internet Finance is developing faster and faster.The Internet Financial firms have many kinds of business patterns including financial payments,wealth managements and so on.The yuebao is issued in June 2013 and a large number of new financial business are launched subsequently.The development of the Internet Finance has influnced the financial business of commercial banks.The thesis mainly studies the structural breaks and factors of the commercial bank financial product’s yield under the background of the Internet Finance.Firstly,the study can provide a reference for people to choose financial business.Secondly,It may be useful for some financial business to avoid risk.The paper chooses the expected yield rates of all,large,joint-stock and city commercial banks financial products as the research object.The paper researches all the structural breaks and the corresponding possible reasons of the yield rates during the period of 2008 to 2016 using the theory of structural change tests.The paper collects the data about baidu index of four Internet Financial enterprises and a main factor named web search composite index is extracted from the baidu index data using the factor analysis method.It can reflect people’s attention to the Internet Finance.There are six affecting variables in the empirical analysis including the web search composite index,the consumer price index,exchange rate,interest rate,money supply and the shanghai interbank offered rate.The empirical analysis about factors affecting the yield rates deletes the CPI factor which is less significant and builds models successfully applying the ridge regression analysis method.The conclusion shows that most kinds of the expected return rates have structural breaks during 2009,2011,2013 and 2015.The ridge regression models show that the web search composite index as well as other explanatory variables all have significant influence on the wealth management products yield of the commercial bank.The paper has some innovation in the following two aspects.Firstly,a new indicator named web search composite index is established to study the influence factors which reflects the development of the Internet Finance.Secondly,the theory of structural change tests is applied to study the risk period of financial products and the theory of the ridge regression analysis is used to delete less important variable as well as solve the multicollinearity problem,the ridge regression models can explain all the influence factors successfully.