Development Of Regional Internet Finance And Efficiency Of Small And Medium Sized Banks

In recent years,internet finance has developed well,gaining a first mover advantage in the financial market competition,and gradually occupying the territory originally belonging to domestic commercial banks with its own development and expansion.However,in this situation,domestic commercial banks are not completely without advantages.Internet finance has also brought new reform and development opportunities to traditional commercial banks.Traditional commercial banks have carried out reform and innovation based on the model provided by the technological progress of Internet finance,and correspondingly adjusted their business methods,resulting in a change in efficiency level.There are significant differences among various types of small and medium-sized commercial banks in China.Therefore,under the influence of internet finance,small and medium-sized commercial banks will also have different performances.Therefore,based on the above considerations,this article conducts classification research on small and medium-sized commercial banks from different levels through efficiency measurement and empirical testing.Based on the results of the impact of internet finance on the efficiency of each type of-small and medium-sized commercial banks,targeted suggestions are proposed.This article combines theoretical and empirical methods to deeply analyze the performance of different types of small and medium-sized commercial banks in terms of operational efficiency under the influence of internet finance from multiple perspectives.The research process of this article is as follows:1.Sorting out relevant concepts.Firstly,the possibility of internet finance entering the "long tail market" was introduced.Secondly,this article introduces the innovative points of different models of internet finance and their impact on traditional small and medium-sized commercial banks.Then,introduce the three types of small and mediumsized commercial banks in China from the perspectives of classification and characteristics,and introduce the heterogeneity of the three types of banks.Finally,select the appropriate type of efficiency as a representative of bank operational efficiency.2、Theoretical review.When analyzing the mechanism of action,the research hypotheses of this article are proposed from the perspectives of theories such as catfish effect,technology spillover effect,and scale effect.3、Empirical analysis.Firstly,the Malmquist index method based on DEA was used to calculate the total factor productivity and decomposition efficiency of 117 commercial banks as the dependent variables;Secondly,the Peking University Digital Inclusive Finance Index is used as a representative of the regional internet development level,and the control variables are divided into two levels,including internal and external,for selection;Finally,establish a regression model to study the impact of the development of internet finance on the total factor productivity of different types of commercial banks in different regions,and conduct heterogeneity analysis.This article not only supplements the relationship between small and medium-sized commercial banks and internet finance,but also supplements the research on their efficiency.In today’s prominent position of small and medium-sized commercial banks,based on the theoretical and empirical analysis of the impact of internet finance on different types of commercial banks in different regions,it can provide certain theoretical guidance for the reform of commercial bank mechanisms.Finally,this article concludes that:firstly,the development of regional internet finance has a positive impact on the total factor productivity of small and medium-sized commercial banks.2、The development of regional internet finance has a favorable impact on the scale efficiency of small and medium-sized commercial banks.3、The development of regional internet finance has heterogeneous impacts on the efficiency of three types of small and medium-sized commercial banks.