The Impact Of Internet Finance On The Profitability Of Commercial Banks

Domestic commercial banks have always relied on the rough profit model of deposit and loan spreads to obtain income.In recent years,Internet finance has flourished with the advantages of high participation,low intermediate cost,good service experience and high transparency,which has deeply affected the profitability of commercial banks.In order to cope with the current opportunities and challenges,commercial banks should accelerate the pace of upgrading,innovation and management reform.Therefore,taking Internet Finance and domestic commercial banks as the research object,the impact of the development of Internet Finance on the profitability of domestic commercial banks is explored and studied,which is very important for commercial banks to formulate development strategies.The impact of Internet finance on the profitability of commercial banks is proved from the theoretical and empirical levels.First,summarize the research on Internet finance at home and abroad,introduce the concept,characteristics,principles and main business models of Internet finance,and analyze the mechanism of Internet finance.Second,42 domestic commercial banks is taken as an example to conduct an empirical study,the data of 9 years from 2012 to 2020 is collected,and the Internet financial data is used to construct a comprehensive target of Internet financial index.Finally,it analyzes and summarizes the results of the above empirical analysis,and puts forward corresponding suggestions for policies and commercial banks,so as to promote commercial banks to maintain and improve their profitability.Through empirical research,Internet finance has a negative impact on the overall profits of commercial banks is argued.Next,an in-depth analysis of commercial banks of different sizes is conducted.The research results show that Internet finance has a certain negative impact on the profits of commercial banks of different sizes,but the degree of impact is different.