Research On The Impact Of Internet Finance On The Profitability Of Commercial Banks In China

In 2013,with the emergence of "Yuebao",various Internet financial products emerged.In the past few years,third-party payment,Internet securities,Internet credit,Internet crowdfunding,Internet finance and other Internet finance have been rapidly developed.Alibaba,tencent,baidu and other large companies are laying out the Internet finance field.The rapid rise of Internet finance has had a direct impact on the operation and management of traditional commercial Banks in China.On the basis of the domestic and international literature review,this article describes the concept of Internet finance,the characteristics of Internet finance and the main model of Internet finance.Through the Internet financial development index,this paper analyzes the development trend of Internet finance in China from Internet payment,Internet money fund,Internet credit,Internet insurance,Internet investment and finance,etc.In this context,this article focuses on the theoretical analysis of the impact of Internet finance on the asset classes,the liability business and the middle business of the traditional business bank.Furthermore,this paper constructs a panel data model between Internet finance and commercial bank profit,and quantitatively studies its impact on the net profit margin of commercial Banks from third-party payment,P2 P network credit,the network financial product and Internet index.The empirical research shows that the net profit margin of the third-party payment,the network financial product and Internet index are significantly negatively correlated with the net profit margin of commercial Banks,while the impact of P2 P network credit on the net profit margin of commercial Banks is not significant.The coefficient of the third-party payment and the network financial product are-0.0064 and-0.0048.That means third-party payments,P2 P network credit and the Internet index will have a detrimental effect on the net profit margin of the business bank.Finally,some Suggestions are put forward based on the research conclusions.