Research On The Impact Of Internet Finance On Commercial Banks'Risk Assumption

In 2013,it was called "the first year of Internet finance".With the increasing demand of Internet technology and public services for financial services,Internet finance has shown a trend of development.Internet finance,with its advantages of high efficiency,convenience,low cost,and wide audience,has greatly squeezed the market that originally belonged to commercial banks,greatly reduced the business of commercial banks,and reduced the growth of profits.Banks play an irreplaceable role as the mainstay in China's financial industry.It is of great significance to study the impact of internet finance on the risk exposure of China's commercial banks.This will not only help banks understand the reality,but also promote the improvement of service models,and thus improve business conditions.,But also help to further understand the advantages and disadvantages of Internet finance,take a series of measures to strengthen risk supervision,and maintain the stability of the financial system.Theoretically,this paper first analyzes the impact mechanism of commercial banks' risk taking and the influence mechanism of internet finance on commercial banks' risk.On the empirical level,a panel regression model was used to study the nonlinear relationship between internet finance and bank risk taking.Prior to this,we examine the main explanatory variables,including the presence or absence of unit roots,The high correlation coefficient causes the model to have multiple collinearity problems.After that,a panel regression model was constructed and the empirical results were tested for stability.In the research process,the samples were divided into two categories:before the outbreak of the financial crisis and after the outbreak of the financial crisis.At the same time,the samples were divided into five major commercial banks and other commercial banks to analyze whether there was heterogeneity among the banks.The research results show that:(1)There is an U-shaped relationship between internet finance and commercial bank risk-taking.That is,the development of internet finance will reduce bank risk exposure in the short term,but in the long-term,it will increase commercial bank risk commitment;(2)The impact of internet finance on the risk exposure of commercial banks is heterogeneous,with the five major state-owned commercial banks being affected to a greater extent,while other joint-stock commercial banks are less affected.