Research On The Impact Of Financial Disintermediation On Innovation Capability Of Commercial Banks In China

Financial disintermediation originated in the United States.As a result of interest rate regulation,banks lost a lot of deposits.In response to this crisis,banks began to innovate,and scholars began to conduct in-depth research on this phenomenon.China’s financial disintermediation originated from the end of the 20 th century,and has formed three major trends: asset-end disintermediation,debt-end disintermediation and technology disintermediation.In order to maint ain lasting good management,China’s commercial banks also try to carry out reform and innovation in various aspects.Therefore,it is worth exploring the influence of financial disintermediation on the innovation ability of Chinese commercial banks.This paper first describes the research related to financial disintermediation and bank innovation ability,sorts out the relevant theories of financial disintermediation and bank innovation,summarizes the current situation of financial disintermediation and the innovation capability of China’s commercial banks,and proposes two ways for financial disintermediation to influenc e commercial banks through direct financing and Internet finance development.In addition,the intermediation rate of assets,liabilities and the proportion of third-party payment of 24 listed Chinese commercial banks are used to measure the disintermediat ion of commercial banks.Based on previous studies of scholars,the ratio of non-interest income,return on assets,non-performing loan ratio,cost-income ratio and educational level of employees are used to construct an indicator system.The system order model and entropy value method are used to measure the innovation capability of banks.This paper analyses the disintermediation and innovation ability of China’s commercial banks in this way.Secondly,panel data are collected from 2009 to 2020,and fixed effects model is used to study the impact mechanism of financial disintermediation on the innovation capability of commercial banks with the help of baseline regression,the moderating effect of disintermediation correction and the heterogeneity analysis of bank types.It is concluded that financial disintermediation stimulates the innovation ability of Chinese commercial banks as a whole,and the effect of asset side disintermediation strengthens the effect.State-owned commercial banks are more restrained by financial disintermediation,while non-state-owned commercial banks are more sensitive and complex to financial disintermediation.The conclusion is of great significance for China’s commercial banks to resist the negative impact of financial disintermediation and improve their innovation ability.Based on this,this paper puts forward suggestions to enhance innovation capability from the level of banks and government departments.At the level of banks,it is necessary to attach importance to innovatio n ability from the strategic level,make full use of advanced science and technology to strengthen product and business innovation and improve management ability.At the level of government departments,it is necessary to increase the support for bank inno vation and regulate innovation behavior from the perspective of supervision,so as to effectively enhance the driving force of bank innovation ability.