Internet Finance?Bank Risk Taking And Bank Liquidity Creation

Commercial banks play important roles in the financial economic system and assume important roles in rational allocation of financial resources.Its short-term and long-term mismatch behavior is constantly creating liquidity in the economic society.The determinants of bank liquidity creation are extremely important for bank management and financial stability.The rise of Internet finance has broken the monopoly of commercial banks and brought opportunities and challenges to the development of traditional commercial banks.The existing research on the relationship between Internet finance and banking mainly focuses on the impact on bank profitability,business management and risk control,and rarely pays attention to the relationship between Internet finance and bank liquidity creation.In fact,because Internet finance will affect the willingness of commercial banks to take risks,and the willingness of banks to risk will affect the creation of bank liquidity,Internet finance will inevitably affect the creation of bank liquidity.Based on this idea,this thesis uses bank risk taking as a mediator to study the impact of Internet finance on bank liquidity creation.In terms of theoretical research,this thesisr analyzes the transmission mechanism of Internet finance that affects the creation of bank liquidity under the intermediary effect of bank risk.The basic logics are listed as follows: Internet finance will affect the bank's risk-taking behavior.Internet finance will help the bank's risk-taking by narrowing the bank's deposit-loan spread channel,and will inhibit the bank's risk-taking by improving the bank's risk management level and operating efficiency channels.And changes in the level of bank risk commitment will affect the bank's choice of assets and liabilities inside and outside the table,which in turn affects liquidity creation.In terms of empirical research,this thesis firstly obtains the liquidity creation level of 61 commercial banks in China from 2009 to 2018 based on the B-B measurement algorithm,constructs the internet financial index by using the text mining method,and then constructs a dynamic panel model,using the generalized system moment estimation(SYS-GMM)Estimate the model and use the "mediation effect test process" to empirically analyze how Internet finance affects bank liquidity creation by affecting bank risk exposure.The main research conclusions are listed as follows:(1)Internet finance has a significant impact on bank liquidity creation.Among them,Internet finance plays a role in promoting the overall and on-balance sheet liquidity creation,and inhibits the creation of off-balance sheet liquidity.(2)Internet finance has a significant positive impact on bank risk exposure.Whether using P2 P online lending,direct indicators such as third-party payment,or the comprehensive index of Internet financial index,Internet finance has a significant positive impact on bank risk exposure.(3)Bank risk-taking plays a part in mediating the impact of Internet finance on the overall and in-balance sheet liquidity of banks.In the process of impact on the liquidity creation of banks,there is no intermediary role between different banks.has a difference.The conclusions of this thesis are listed as follows:(1)Linking Internet finance with bank liquidity creation with bank risk-taking as a “bridge”,enriching the research on the relationship between Internet finance and bank liquidity creation.(2)This paper expands the theory of Internet risk-to-bank risk-taking channels.The existing research mainly focuses on “Internet Finance ? Bank Risk Taking”.This paper extends the channel vertically to the “Bank Risk Taking ? Bank Liquidity Creation” link,which helps to supplement the Internet financial bank risk-taking channel theory.