Research On The Impact Of Internet Finance On The Risk Taking Of Commercial Banks

In recent years,with the rapid development of Internet technology and the increasing demand of investors for financial services,Internet finance has emerged and developed rapidly.Internet financial rely on its own high efficiency,low operating cost,easy operation etc.Occupies a place in the financial market,to some extent,instead of traditional commercial Banks to realize the function of part,not only by attracting high quality clients to grab the market share of commercial Banks,but also affect the profitability of commercial Banks,further increased the risk of commercial Banks.For a long time,commercial Banks have been active participants and important components of China's financial market,playing an indispensable role in the traditional financial market.Therefore,the risk of financial and commercial Banks on the Internet has important practical significance to study the relationship between,on the one hand,can help Banks to conform to the trend of The Times,improve the financial service level and quality,thus improving the efficiency of the resources of the traditional financial industry,to promote financial enterprise management mode reform,determine the development direction and the future development of more effective strategies;On the other hand,it is also conducive to enhancing the further understanding of Internet finance,so as to help the regulatory authorities to strengthen the management and control of risks and maintain the overall stable and good development trend of China's economy.From the perspective of theory,this paper firstly summarizes the definition of Internet finance,product model and basic characteristics,and the theoretical basis of bank risk taking,laying a foundation for the following theoretical analysis.From the empirical point of view,this article selects the 28 listed Banks in China in 2009-2018 annual report data and fixed effects model is set up on the Internet financial development level and the commercial bank risk bearing the nonlinear relationship between the regression analysis,and explains the main variable measure and inspection,to avoid the problems occurred in the model variables and linear correlation,using STATA software was carried out on the panel data regression analysis,the regression results are finally the robustness test.Meanwhile,the samples were divided into five state-owned commercial Banks and other joint-stock commercial Banks to analyze the heterogeneity.According to the research conclusions of this paper :(1)the relationship between the development of Internet finance and the risk taking of Chinese commercial Banks satisfies the u-shaped law.In other words,the development of third-party payment and P2 P can effectively reduce the risk taking of commercial Banks in China in a short time,but in the long term,the development of third-party payment and P2 P will significantly increase the risk taking of commercial Banks.(2)of the different types of commercial bank's risk bearing level for heterogeneity different between Internet financial development degree of reaction,in particular,in the diplomatic relations between the a&m five big state-owned commercial Banks in the development of the Internet financial level sensitive reaction,other joint-stock commercial Banks would also be affected,but the sensitivity is relatively low.Finally,this paper puts forward some policy Suggestions from three aspects: bank governance,monetary policy and industry supervision.