Research On The Impact Of Internet Finance On The Risks Of Commercial Banks

Internet finance was born under the background of the promotion of national financial liberalization.After the blowout development in 2013-2014,it gradually entered the field of traditional financial institutions.Therefore,in order to compete for the market and future profits,some traditional financial institutions have adjusted their business scope and development strategy one after another,and even some commercial banks have tried to participate in Internet finance to improve customer experience and carry out effective business management and risk management;then,China has initially completed the market-oriented interest rate conditions,as well as with the financial reform and Internet gold.With the further development of finance,what risks commercial banks will face,how the government grasps the strength and progress of future financial reform,how to effectively monitor the development of Internet finance,and how commercial banks face these external factors deserve our attention.Based on the theory of financial liberalization,financial supervision and Internet finance,this paper qualitatively analyses the intrinsic influencing factors of Internet Finance on commercial banks’ risk,and then obtains the impact of Internet Finance on commercial banks’ risk-taking level through empirical research,thus putting forward policy recommendations.In the theoretical part,firstly,this paper takes the theory of financial liberalization and financial supervision as the theoretical basis,and analyses its internal influence mechanism.In the empirical part,we use panel data of 15 banks from the first quarter to the third quarter of 2008-2018 to quantitatively analyze the relationship between Internet Finance and Commercial Bank risk,according to the VAR model and the static panel regression and dynamic panel regression.As a result,this paper analyses several factors that influence the risk of commercial banks by Internet finance.Empirical results show that: the improvement of the development level of Internet financial enterprises will increase the overall commercial bank risk,but for commercial banks with higher substitution rate of electronic banking,it will reduce their risk).The improvement of Internet level,capital adequacy ratio and profitability of banks will reduce the risk of commercial banks.)The larger the scale of bank assets and the real growth rate of GDP,the more dynamic the risk of commercial banks is.Positive impact;when the development level of Internet financial enterprises is high,the increase of deposit-loan ratio will reduce the bankruptcy risk of commercial banks.