Research On The Influence Of Internet Finance On The Systemic Risk Of China's Commercial Banks

Since 2013,Internet finance has continuously innovated new products at a relatively fast speed.There has been a business development mode mainly based on third party payment,P2P network loan,public financing and e-commerce finance.Internet Finance has increased the vitality of China's financial industry to a certain extent,not only can effectively alleviate the financing difficulties of the large andmedium sized enterprises and the social people restricted by the mainstream financial market,giving full play to the role of financial financing and better service for the development of our country's real economy,but also can push the commercial bank to continuously improve the level of financial innovation and its own Internet,changing the traditional profit model and development state,the operating efficiency of the domestic banking industry has been improved and its vitality is enhanced.However,there are also some shortcomings in the rapid growth of Internet finance.Financial supervision and management departments and government related reports have repeatedly stressed the need to increase the monitoring and risk management of Internet Finance and maintain financial stability.Commercial banks,which occupy a core position in our country's economic system,have a crucial impact on the growth of a country's economy.Of course,its risk prevention and control work is also a matter of concern to the regulatory organization.Since the outbreak of the global financial crisis in 2008,national governments have introduced relevant financial regulatory policies to strengthen risk prevention and control.The rapid development of Internet banking to their traditional financial industry suffered a greater impact,especially on the banks of the assets of the business,intermediate business and liability business,which greatly reduce the scale of operations of the banking industry,the erosion of profits,to the domestic banking sector brings profit risk,default risk and liquidity risk the outbreak spread,individual commercial bank risk diffusion will eventually lead to systemic risk.At the same time,the development of domestic commercial banks in the cooperation with internet financial enterprises,their own specific technology risk,operational risk,legal risk,credit risk and other spillovers will directly or indirectly infect and affect the systemic risk of banks.The occurrence of systemic risk will bring a fatal blow to our financial market,therefore,it is essential to guide the standardized development of the Internet financial market,maintain the stability of the financial system and prevent the systemic risk.The results show that Internet finance has a significant positive correlation with the systemic risk of domestic commercial banks,that is,Internet banking will increase systemic risk of banks.According to the level of development of Internet banking and commercial banking system risk do regression analysis found that with the gradual deepening of the stable growth of Internet banking,Internet banking in the number of customers and the business scale of the traditional banking industry will bring more and more significant impact and risk.Therefore,in order to effectively avoid systemic risks of banks,we should take different risk prevention and control strategies by internet financial companies,commercial banks and government regulators.