Research On Influence Of Internet Finance On Risk-taking Behaviors Of Commercial Banks In China

In recent years,due to the continuous development and maturity of e-commerce,the continuous improvement of network technology and the deepening of financial liberalization,Internet finance has become a new field which is different from traditional banks and capital markets in China.In the process of continuous improvement of Internet Finance,Commercial banks,as Chinese traditional financial pillar,facing the gradually shrinking market share because of the Internet penetration and cross-border business crowding the market,they gradually adjust their business and strategy and involved in Internet banking to improve its competitiveness,due to the use of Internet technology to reform its own management and risk management strategy,the bank's own risk tolerance level also affected.Then,in the sustainable development of Internet mature in the future,focusing on the bank's risk-taking behaviors will push the commercial banks to change the strategy to adapt to financial reform,push the internet financial enterprises adopt the strategy to develop more effective and harmonious,and push the government to grasp the power and speed of the financial reform and formulate legal regulations to implement the appropriate supervision of the new field of financial technology.This paper analyzes the impact of Internet Finance on the risk bearing level of commercial banks through qualitative and quantitative of commercial banks.This paper is divided into five chapters: the first chapter untangle the theoretical and practical significance of the subject and current research status.The second and third chapters carry out qualitative analysis from the main modes of Internet finance,the current status of development,and the impact mechanisms on the risk tolerance of commercial banks.Internet financial companies,as competitors in banking operations,will affect bank performance and competitive environment,thereby influence the risks of banks;The Internetization of traditional financial institutions,as a result of banks' innovations,not only enhance the competitiveness of banks.but also bring the unpredictable risk.Finally,a dynamic regression model was constructed and empirical analysis was conducted using the GMM estimation method to quantitatively study the impact of internet finance on the risk tolerance level of commercial banks.Research shows that the development of Internet finance has speeded up the information management process of the bank and improved the bank's risk control system,but at the same time,it also raised the risk bearing level of the bank.Therefore,commercial banks should change their strategy,segment their markets,actively expand their businesses,and play a differentiated competitive advantage.