Research On The Challenge And Countermeasures For Rural Commercial Bank Under The Background Of Internet Financial Development

With the widespread popularity and in-depth application of the Internet,Internet finance has made a leap-forward development,which has had a tremendous impact on the management of traditional banking institutions.In recent years,Internet finance has touched the rural financial market.Due to its advantages of convenience and promotion,rural commercial banks rooted in the grassroots have been widely affected by Internet finance and their business income has decreased.On the other hand,Internet finance can stimulate rural commercial banks to take advantage of the development opportunities of Internet finance,realize the networking of intermediary business services,reduce unnecessary physical outlets,and save network outlets.This paper uses a combination of empirical analysis and case analysis to explore the direction and influence of rural commercial banks on Internet finance,and how rural commercial banks can cope with the challenges brought by Internet finance under the rapid development of Internet finance.The impact of rural commercial banks and the coping strategies under the background of Internet finance development are the topics discussed in this paper.This paper first reviews the relevant theories of Internet finance development and the theoretical perspectives on the development of banking industry affecting Internet finance at home and abroad.Then,it analyzes the development status and characteristics of Internet finance,and discusses the impact of Internet financial model on rural cornercial banks from the level of intermediary business income and interest income of rural commercial banks.Next,using the panel data and dynamic panel,the paper analyzes the impact of Internet finance on the income and interest income of the intermediary business of the rural commercial bank with the quarterly data of five listed rural commercial banks and five unlisted rural commercial banks.The results show that the development of Internet finance has increased the income of listed rural commercial banks,while the income of non-listed rural commercial banks has decreased with the development of Internet finance.Then,this paper takes the non-listed rural commercial bank Luozhuang Rural Commercial Bank as an example to conduct SWOT analysis,and studies the strategies suitable for rural commercial banks to expand their business from the aspects of internal advantages,disadvantages,development opportunities and industry competition,and puts forward operational suggestions.Finally,this paper proposes strategies for small and medium-sized rural commercial banks to respond to Internet finance.