Research On The Influence Of Internet Finance On The Systemic Risk Of China’s Commerical Banks

Since the beginning of the 21st century,Internet financial innovation emerges endlessly.The payment methods based on Internet technology and the innovation of investment and financing channels have had varying degrees of impact on people’s daily lives,corporate finance and financial institutions.The influence of internet finance on China’s banking industry has always been a hot topic.The emergence of Internet finance has broken the monopoly position of China’s commercial banks in the financial field.It has exerted unprecedented pressure on the asset business,debt business and intermediary business of China’s commercial banks.Commercial banks are no longer the “financial institutions that are lying and making money” in the eyes of people.The China Financial Stability Report(2018)has pointed out that after 2018,the uncertainty of China’s financial environment is increasing.The cyclical,institutional contradictions and risks accumulated in China’s economic system are coming to the fore,and it is necessary to pay a certain cost even experience certain pains to resolve potential risks.The task of preventing and resolving major risks is still grim.On the one hand,Internet finance has profoundly changed the banking system in China,and on the other hand,it is the practical need for China to prevent and resolve major financial risks.It makes the study of the impact of Internet finance on the systemic risk of the banking industry very practicalThis paper mainly studies the impact of internet finance on the systemic risk of China’s banking industry from both theoretical and empirical aspects,and focuses on analyzing its specific impact mechanism.The paper’s purpose is to provide practical advice for supervisory authorities to prevent the occurrence of systemic risks in the banking industry during the Internet financial wave.By constructing the mediation effect test model,it is found that the development of internet finance will improve the overall systemic risk level of China’s banking industry.Internet finance mainly increases the systemic risk of the banking industry by increasing the volatility of commercial banking business structure,the decline in asset quality and the narrowing of profit margins.