Analysis Of Internet Finance On Commercial Bank's Performance

Commercial banks play an important role in China's financial system.Under the background of the rapid development of internet finance,the business performance of commercial banks is a topic of general concern.The development of internet finance not only challenges the operation of commercial banks,but also creates opportunities for the operation of commercial banks.So what is the impact of internet financial development on commercial banks' operating performance,and whether the impact will be different because of the difference in scale?This article will answer this question in five parts.First of all,through the domestic and foreign internet financial development of commercial banks operating performance related literature review found that the previous literature is mainly to use qualitative analysis method to study.A small number of quantitative studies,mainly using panel data regression model,only focus on the short-term impact of internet finance on commercial bank operations.And in the aspect of bank performance index selection,only considering the profitability of banks,ignoring the risks associated with commercial banks.In this paper,we choose the risk-adjusted bank performance indicators,and use the vector autoregressive model to objectively evaluate the short-term and long-term impact of internet finance on commercial bank performance.Secondly,based on the four theoretical hypotheses of financial intermediation theory,financial repression theory,long tail theory and platform economics theory,this paper argues that internet finance can influence the operation of commercial banks in China.Then,based on the evaluation of the development level of internet finance in China,the paper qualitatively analyzes the influence mechanism of internet finance on the business performance of commercial banks,and finds that three kinds of internet finance platforms(third-party payment platform,wealth management product sales platform,financing platform)affect the intermediate business of commercial banks,such as deposit,loan,payment and settlement,respectively.Thirdly,according to the theory of financial function,the evaluation system of Internet financial index is constructed from the four dimensions of payment clearing,resource allocation,information channel and risk management.On the basis of selecting the performance index and control variables of commercial banks,76 commercial banks in China were used as samples for 2003-2016,and the influence of Internet finance on the performance of commercial banks in China was empirically analyzed by using vector autoregression model.The results of the cointegration test show that,in the long run,the change and fluctuation of Internet financial market are not the main factors that affect and restrict the performance of traditional commercial banking.The results of the impulse response function show that in the short term,the development of Internet finance has different effects on the performance of commercial banks by different types of scale and major business.Finally,in the light of the conclusion,the paper puts forward some suggestions on how to deal with the development of internet finance in China's commercial banks.