Research On The Influence Of Fintech On The Stability Of Chinese Commercial Banks

Fintech is developing rapidly in China,and its development in some fields is even better than that of the traditional financial powers in Europe and America.Its rapid development has brought profound influences and changes to China's economic and social development,financial system and financial institutions.Based on technological development,innovative financial services driven by technological characteristics have incomparable advantages over traditional financial institutions in terms of business supply in many aspects such as universality,cost efficiency and customer experience,making it difficult for traditional financial institutions to ignore its impact and bringing great operating pressure to the banking industry.Most of the domestic researches on fintech are at the theoretical level,and there are few researches on how its development affects the operation stability of commercial Banks.Therefore,from the perspective of theory and practice,a systematic and in-depth study on the relationship between the development of fintech and the operational stability of China's commercial Banks is of great practical significance for promoting the transformation and development of fintech in China's banking industry and maintaining the health and stability of the financial system.This paper discusses the direct and indirect influence of the development of fintech on the operation stability of commercial Banks in China.On the basis of the existing research results,and from the financial fragility,financial innovation,information asymmetry,long tail theory and other related theories,this paper expounds the reasons why the technical innovation attributes of fintech affect the operation stability of commercial Banks.This paper further analyzes the mechanism of the influence of fintech development on the stability of commercial Banks,including the competitive effect caused by financial attributes and the enabling effect caused by technical attributes.In terms of quantitative empirical analysis,combining the definition and connotation of fintech,this paper constructs the measurement index of China's fintech development,and takes the data of China's listed commercial Banks from 2008 to 2017 as samples for theoretical and empirical analysis.Research results show that the financial development of science and technology will influence on the stability of commercial Banks present first fall after rise of inverted "U" type trend,namely financial technology enabling effect is larger in the initial period of development can help commercial Banks to reduce the cost,promote efficiency of management,improve operation stability.However,the competitive effect of fintech emerged later,which exceeded the enabling effect and raised the capital cost of commercial Banks,which in turn increased risk taking and weakened the operational stability of commercial Banks.In terms of responding to the development of fintech,the performance of all types of commercial Banks is heterogeneous,and the operational stability of joint-stock commercial Banks is more sensitive to the impact.In the end,the paper gives some overall and specific policy Suggestions.