Research On The Impact Of Internet Credit On Credit Efficiency Of China's Commercial Banks

Internet finance is the outcome of the information age,simultaneously is the achievement of Internet technology for innovating financial products in the financial industry.As a supplementary financial system for commercial banks,Internet Credit has broken the low resource allocation efficiency under the traditional financial system.Different from commercial banks' credit resources,which mainly serve large enterprises and well-worthy individuals,Internet Credit mainly serves small and micro enterprise owners and personal consumer credit.Internet Credit,as an emerging credit model,directly refers to the core business of commercial bank credit.With the help of Internet technology,online lending attracts credit customers which excluded by commercial banks with its simple procedures,low threshold,fast lending and high returns.At the same time,compared with commercial banks,Internet finance companies pay more attention to customer experience,emphasize interactive marketing,and advocate open platforms to provide customers with flexible products,which is more favored by customers.In the meanwhile,refers to the impact of commercial banks,Internet Credit also provides a reference for commercial banks to simplify processes and prevent risks with its advanced trace processing technology and network behavior tracking technology.In the face of the impact of the rapid development of Internet credit,how is the development of credit business of commercial banks,whether there is a large fluctuation in efficiency,and whether the future development will face continuous impact.In response to these problems,this paper uses the factor analysis method to measure the comprehensive evaluation index of Internet credit based on the existing literature,and then uses the impulse response model to conduct empirical research analysis.The study found that:(1)Internet Credit has a short-term fluctuation effect on total factor productivity of commercial bank credit,and it has a negative impact for a long time.The short-term positive and negative fluctuations indicate that the sudden and rapid development of Internet Credit has inevitably impacted the credit business of commercial banks.Banks reacted promptly to respond to shocks,and resisted negative impacts,which caused fluctuations in total factor productivity.However,in the long run,there is a different service entities between commercial bank credit and Internet Credit.With the industry segmentation,the impact of Internet Credit on traditional credit will gradually weaken,and the total factor productivity of commercial bank credit will gradually increase,then be stable.(2)Internet Credit has positively stimulus to the pure technical efficiency of commercial bank credit.Internet Credit relies on advanced big data Internet technology to form a relatively complete system of information collection,customer selection and risk identification,which greatly reduces the investment of human capital,shortens the time for credit approval and issuance.In the process of the development of Internet Credit,banks are learning continuously,and also improving their technical efficiency.(3)Internet Credit has no significant impact on the scale efficiency of commercial bank credit.Internet Credit mainly serves small and micro enterprise owners and small-scale consumer credit customers.On the contrary,commercial banks are more concerned with large-scale enterprises with good qualifications and reputable customer groups.Although Internet Credit has snatched some small and micro enterprise customer groups,the scale of these groups to the commercial banks is almost negligible.So the impact of Internet Credit on the scale efficiency of bank credit is minimal.In the end,combined with the conclusions and the risk problems in the development of Internet Credit,this paper gives policy recommendations from the levels of commercial banks,Internet companies and relevant national departments.