Research On The Relationship Of Competition And Cooperation Between Yu'ebao And Commercial Banks

In recent years,Internet finance develops rapidly.And Internet finance has promoted the development of inclusive finance,which as a result has improved the efficiency of the financial industry.As a new kind of business model of internet finance,Yu Ebao is a great attempt and innovation in the development history of China's financial industry.Since its birth,it has had a major impact on the financial sector and has attracted widespread attention from the media and academia industry.We think the specific study of relationship between Yu Ebao and commercial banks businesss can reflect the current competition and cooperation between Internet finance and traditional finance to a certain extent,which has important practical significance.And conducting a more systematic explanation of the various impacts of Yu Ebao on commercial banks has certain theoretical significance.Therefore,under the above macro and micro background,this paper studies the relationship between internet money funds represented by Yu Ebao and commercial banks business,and shows how commercial banks can achieve business transformation to cope with the impact and get coordinate development with internet finance.On the basis of relevant theories,we systematically studies the competitive and cooperative relationship between Yu Ebao and commercial banks from the perspectives of scale and price.And we specifically analyzes competitive relationship between Yu Ebao and commercial banks deposits business,wealth management services,third-party payment businsess and fund agency business from the perspective of scale.And study the cooperative relationship between Yu Ebao and commercial bank loan business from the perspective of scale.This article also analysis of the transmission mechanism of how Yu Ebao to increase bank's capital cost and the impact mechanism of Yu Ebao's declining interest rate on the interbank market from the perspective of price.Based on theoretical research,we construct linear regression model and VAR model to carry out empirical research.The results of the study indicate that:(1)From the perspective of scale,there is a competitive and cooperative relationship between Yu Ebao and commercial banks.The competitive relationship shows the diversion effect of Yu Ebao on deposits in commercial banks,and Yu Ebao mainly diverts current demand deposits in China,while it does not have a significant diversion effect on the fixed deposits.The cooperation relationship shows that Yu Ebao has a positive effect on the commercial bank loan business.It mainly promotes the development of China's short-term loan business,while has no significant impact on the medium-term and long-term loan business.(2)From the perspective of price,there is also a competitive and cooperative relationship between Yu Ebao and commercial bank business.The competitive relationship mainly shows that commercial banks issue more similar wealth management products with the birth and development of Yu Ebao,which led banks to take the initiative to raise the cost of funds.But there was no evidence that Yu Ebao would promote the increase of deposit interest rates of commercial banks.The cooperative relationship shows that Yue Bao reduces market interest rates through the interest rate transmission mechanism,thereby reducing commercial bank financing costs.The specific relationships between Yu Ebao return rate and the market interest rate are as follows:There is a long-term stable relationship between Yu Ebao return rate and the market interest rate;And in short term,the changes of Yu Ebao's yield causes the market interest rate to change in the reverse;and the negative Impact of on the market interest rate caused by the the impulse of Yu Ebao will last for about 15 weeks.(3)In a comprehensive view,the competition and cooperation between Yu Ebao and commercial bank business will,to a certain extent,promote the improvement of financial efficiency.That is to say,Yu Ebao has weakened thefinancial disintermediation problem,promoted inclusive finance,accelerated the liberalization of interest rates,and forced the reform of commercial banks to improve the operating efficiency of commercial banks.Finally,according to the results of theoretical analysis and empirical research,relevant policy recommendations are proposed from the perspective of commercial banks and the government.