Research On The Impact Of Internet Finance Development On The Risk Taking Of Chinese Commercial Banks

With the continuous advance of financial market reform and the upgrate of Internet mobile communication technology level,the traditional financial business development mode has been unable to meet the growing financial needs of the market,Giving birth to the new mode of Internet finance.Internet finance has broken the shackles of traditional financial institutions in the extension of services because of its efficient and convenient advantages,and has derived a series of new financial formats such as mobile payment,P2 P and crowd raising.The appearance of phenomena such as WeChat red bag and balance treasure further promoted the booming development of Internet finance,and the operation efficiency,profitability level and market position of commercial banks were also impacted.In order to maintain profit growth,Banks begin to reduce spreads,expand intermediary businesses,use internet finance technology carrying out business.Under this background,what elements will influnece bank risk taking? Does the bank risk face the heterogeneity of the impact of Internet Finance? The solution of the related issues is of great significance to the transformation of the bank's scientific management and the maintenance of the stability of the financial system.Therefore,this paper will make a theoretical analysis and Empirical Study on the impact of Internet Financial Development on the risk bearing of the bank.Under the current research background,this paper reviews the literature on the impact of Internet Finance on commercial banks at home and abroad.The research content and direction based on combing the research results of domestic and foreign scholars,the definition of Internet banking and bank risk,and combined with the theory of information asymmetry,financial liberalization and financial innovation,from China's Internet financial development status and a functional perspective,this paper describes the relationship between Internet financial and banking risk further,analysis of the Internet financial commitment influence mechanism of commercial bank risk.The empirical analysis,combined with the definition and function of Internet banking,from the "text mining method" and Baidu index to build Internet financial development index,with 21 commercial banks as the research object,the establishment of bank risk and Internet financial development index and the dynamic model and relevant control variables,using differential GMM estimation results and effect analysis of the Internet financial development index on the impact of China's commercial bank risk.At the same time,we use the substitution rate of the non-performing loan rate and the risk taking of banks to verify the robustness.Then we will further study the differences and causes of the impact of Internet Financial Development on different types of commercial banks.The following conclusions are drawn:(1)the development of Internet Finance exacerbated the market competition,increased the risk-taking willingness of banks,and increased the risk-taking level of commercial banks.(2)the development of Internet finance has different influence on the risk bearing level of different types of commercial banks,and has a greater impact on the risk taking of joint-stock banks.The above conclusions can not only help our commercial banks better understand the relationship between Internet Finance and bank risk taking,but also help commercial banks to dig out valuable information from them,so as to better grasp opportunities and upgrade them.Therefore,in order to reduce the overcommitment of commercial banks' risk and promote the healthy development of financial system,it's suggested that we should strengthen supervision over Internet finance,guide and promote market cooperation,and enhance Internet technology and enhance our own management capabilities.