Research On The Impact Of Internet Finance On Risk-taking Of Chinese Commercial Banks

Thanks to the advent of the"Internet+"era,Internet finance,as a new form of financial industry,has sprung up rapidly.It has injected vitality into the new era of Chinese enterprises'participation in economic high quality growth.On the one hand,the vigorous development of Internet finance has broadened financing channels and helped alleviate the financing difficulties of small and medium-sized enterprises;on the other hand,it has made commercial banks face dangerous challenges such as rising capital costs,weakening intermediary status and narrowing deposit-loan spreads.In order to withstand the impact of Internet finance,commercial banks actively seek business model change and business concept innovation,and their risk-taking will be affected.Under this background,it is of great practical significance to analyze and examine the impact mechanism and actual effect of Internet Finance on commercial banks'risk-taking.Based on the current situation of Internet finance,this paper tries to explore the impact of Internet Finance on the risk-taking of commercial banks.To provide a diversified perspective for the correct treatment of the competitive and financial relationship between Internet financial enterprises and commercial banks.This paper combines theoretical analysis with empirical research.Firstly,based on reviewing the relevant literature at home and abroad,an analytical framework describing the logical relationship between Internet Finance and risk-taking of commercial banks is constructed.Then,take 111 commercial banks in China from 2008to 2017 as the research object,use factor analysis to measure the comprehensive development level of Internet finance,and Z_ROA value to measure the risk-taking of banks from the perspective of financial function.Use fixed-effect model to test the impact of Internet Finance on the risk-taking of commercial banks in China.Finally,use the intermediary effect model to examine the impact paths of Internet Finance on the risk-taking of commercial banks.The findings are as follows:?1?From 2008 to 2017,the comprehensive development level of Internet finance is on the rise year by year.From the perspective of different functions of Internet finance,the development level from strong to weak is risk management function,information processing function,resource allocation function and payment and settlement function.?2?By diverting the business of commercial banks,Internet finance increases their capital cost,which leads to the narrowing of deposit-loan spreads and shrinking of operating profits.Commercial banks will change the level of risk tolerance and take the initiative to undertake risks.For classified banks,Internet finance has the greatest impact on the risk-taking of city commercial banks,followed by joint-stock banks,state-owned banks and agricultural commercial banks.?3?In terms of conduction path test,we find that Internet finance can increase its risk-taking by reducing the profitability level,operating efficiency and credit quality control level of commercial banks,part of the intermediary effect of the three paths is established.In the development of Internet finance,the decline of profitability and operational efficiency of commercial banks will affect the risk preference of banks and increase the risk-taking of commercial banks.The development of Internet finance makes commercial banks neglect the precise control of credit quality,and the rise of credit risk aggravates the risk-taking of commercial banks.