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

With the rapid development of Internet finance in China from 2013,the Internet monetary fund,Internet financing,third-party payment and other brand new Internet financial models,which in low transaction costs,high efficiency are changing people’s daily consumption habits and attracting many investors.Faced with the challenges of Internet finance,debt cost of commercial banks increased,interest income was squeezed,traditional profitability model was influenced.Different types of business,such as deposit business,loan business,and intermediary business are also affected to varying degrees,resulting in the change of its profitability.This series of changes and shocks also forced commercial banks to narrow their loan and debt spreads,actively expand their intermediary business,innovate financial products and services,promote transformation and upgrading in order to consolidate their financial position.What happened to different types of business and profitability of China’s commercial banks in this situation?Which measures should be taken?These:questions are worth thinking and doing research.The combination of theoretical research and empirical analysis are used in this dissertation.First of all,the definition of Internet finance,models and current situations,theoretical basis are sorted out.Secondly,the influence mechanism and influence effects in business of commercial banks by internet finance are analyzed.Thirdly,the relevant data from 2013 to 2015 are be used to test the impacts of internet finance on the profitability of 16 listed typical commercial banks.The results show that the Internet monetary fund and third-party payment have negative impacts,while P2P network loans have an opposite impact.Three panel data models are also constructed in order to make comparison.The results show that the ability to cope with the challenges of Internet finance of state-owned banks is stronger than that of joint-stock commercial banks and urban commercial banks to a certain extent.Finally,according to the conclusion of this dissertation,relatively policies and suggestions for government and banks are put forward,hoping to provide reference for the banks to actively adapt to Internet finance and achieve sustainable development.