Research On The Impact Of Non-Interest Business And Internet Finance On The Risks Of Commercial Banks

It is obvious that nowadays,commercial banks are facing tough market environment.On the one hand,the internet technology has brought about significant changes to all walks of life.Compared with traditional finance,online payment,online lending and online investment are becoming more convenient for people,which promotes the finance market.However,internet companies with advanced technology and innovative products enter the finance market and this has great impact on commercial banks,which makes it difficult for commercial banks to gain sustainable profit.On the other hand,the market competition between commercial banks is becoming more and more fierce,therefore,a majority of banks try to develop non-interest business,ameliorating their income structure.Based on the above background,this passage would talk about how internet finance and non-interest business influence the credit risk,liquidity risk and bankrupt risk that commercial banks faced with.Firstly,by learning a large number of existing research,the passage analysis how internet finance and non-interest business affect different kinds of bank risks.Then,based on the panel data of 35 listed banks in china from 2009 to 2016,the passage sets up a dynamic panel model and makes an empirical study.The conclusion are as follows.Internet finance has negative impact on both credit risk and bankrupt risk,but it has positive impact on liquidity risk.And non-interest business has negative impact on credit risk,liquidity risk and bankrupt risk.The interaction between internet finance and non-interest business has positive impact on credit risk and bankrupt risk.What's more,fee and commission income business could lower the level of bankrupt risk while other kinds of non-interest business may increase risk.Based on these conclusions,the passage finally gives some suggestions on risk management and the revolution of commercial banks.