Research On The Impact Of The Development Of Money Market Funds On The Operating Efficiency Of Commercial Banks

Influenced by the current development of Internet financial market and people’s enhanced awareness of financial services,money market funds have developed rapidly in recent years.However,according to American experience,the development of money market funds will have a certain negative impact on the operation and management of commercial banks.Commercial banks are the main component of China’s financial market and have a great impact on the development of China’s macro-economy.In the period of the vigorous development of money market funds,it is very necessary to study the impact of the development of money market funds on the operating efficiency of commercial banks.The operating efficiency of commercial banks is expressed by the total factor productivity change index,which comprehensively reflects the operating conditions of commercial banks.Starting from the businesses of commercial banks,this paper analyzes the direct impact of money market funds(MMFs)on the businesses of commercial banks in combination with the current situation.It is found that the biggest direct negative impact of MMFs on commercial banks is the diversion of demand deposits in the liability business,which increases the capital cost of commercial banks,In addition,asset business and intermediary business have both positive and negative impacts;Then it combs the indirect impact of the emergence of monetary funds on the operation and management of commercial banks and the transformation of service concept,and preliminarily believes that the overall impact of the development of MMFs on the operating efficiency of commercial banks is negative.To test the hypothesis.This paper uses DEA Malmquist index to calculate the operating efficiency of commercial banks,and then uses fixed effect model,random effect model and systematic GMM to make an empirical analysis of the impact of MMFs development on the operating efficiency of commercial banks.The empirical results show that the development of money market funds does have a significant negative impact on the operating efficiency of commercial banks.Then the robustness test is carried out,and the results still support the conclusion that the money market fund is negative to the operating efficiency of commercial banks,and the results are relatively stable.Finally,the heterogeneity test is carried out,and the results show that there is no significant difference between different commercial banks.This paper believes that the main reason is that the current development time of money market funds is still short,so it can not show differences directly in various types of commercial banks in detail.Besides the development of money market funds,the development of digital finance and the competition of commercial banks are also important factors affecting the operating efficiency of commercial banks.This paper draws the Enlightenment from the commercial banks that commercial banks should strive to improve their business capabilities to cope with and win the fierce competition and enhance customer stickiness;Continue to change operation strategy,pay attention to long tail customers and broaden profit sources;Actively promote their own digital transformation and keep up with the times.In addition,regulators also need to strengthen the supervision of money market funds and commercial banks to maintain financial stability.