Research On Risk Measurement,Regulatory Game And Regulatory Efficiency Of Internet Finance In China

Internet finance is a new financial format created in Chinese economy in recent years.It has emerged in the context of financial repression.As a new financial format,Internet finance has special connotations and patterns,and has positive effects on economic development.With the development of Internet finance,the problem of Internet financial risk and regulation has become the focus of national economic and financial attention,and also become one of the key subjects of related theoretical research.From the existing research results,scholars have made some achievements in the study of Internet finance at all levels.However,the existing research results are not systematic enough.This paper conducts in-depth research which combines theory with practice from two aspects of Chinese Internet financial risk and regulation,and explores the corresponding relationship between the two.The main contents are:Firstly,this paper analyzes the theory of Internet financial regulation.First of all,it defines the narrow and broad connotation of Internet financial regulation starting from the basic theory of Internet finance.By comparing with the traditional finance,the paper summarizes the characteristics of the Internet financial regulation,such as the times of the concept,the particularity of the object,the wide range of behavior,the diversification of the mode,the complexity of the method and the blurring characteristics of the boundary.Next,from the perspective of supply and demand,the main body of Internet financial regulation is analyzed,and the external effect and internal mechanism of Internet financial regulation are analyzed.Then the paper analyzes the cost and income of Internet financial regulation.The cost is divided into general cost and institutional cost,and the profit is divided into micro income and macro income.Therefore,the efficiency of the Internet financial regulation system depends on the cost-benefit comparison between supply and demand,which rationally determines the innovation path of the Internet financial regulation system.At the same time,this paper uses the game analysis framework to analyse game theory,game evolution and game equilibrium of Internet financial regulation,providing further theoretical basis for controlling Internet financial risk and improving the efficiency of Internet financial regulation.Last,this paper analyzes the Internet financial risk and its measurement.This paper mainly analyzes the internal and external mechanism,forms of expression,transmission mechanism and measurement standards of Internet financial risk.Secondly,this paper analyzes the practice and development of Internet financial regulation in china.First of all,it analyzes the changes of Chinese Internet financial regulation system which can be divided into blank period,germination period and development period.On this basis,this paper analyzes the five characteristics of Chinese Internet financial regulation system changes,such as hysteresis,incremental,marginal,gradual and mandatory.Next,it analyzes the current situation and existing problems of Internet financial regulation in china.The main problems contain the weakness of systematic regulatory institution,the unclear regulatory orientation,the defect of regulatory system,the lag of regulatory methods and the imperfect of supporting system.After that,the development trend of Internet financial regulation in China is analyzed.The future direction of regulation should be to strengthen the Internet monetary regulation,to strengthen the regulation of Internet financial behavior integration,to promote the fusion of Internet financial regulation,to strengthen financial technology regulation,as well as to realize the institutionalization and legalization of Internet financial regulation.Thirdly,this paper makes quantitative analysis and empirical test on the impact of Internet finance on traditional financial risk and systemic risk.The principal component analysis method is used to verify that the development of Internet finance has a significant impact on the risk of banking industry.Then,the paper constructs the dynamic relationship between Internet financial and banking system risk by using the structural vector auto regression model(SVAR).Therefore,we find that Internet finance will push up the cost income ratio,reduce the non interest income of bank industry,reduce the risk diversification effect,and increase the risk of banking industry through the influence of bank debt changes.On this basis,the analytic hierarchy process(AHP)is adopted to select the first class evaluation index and the second class evaluation index,and respectively establish fuzzy judgment matrix.It is concluded that the overall risk of Internet finance is in the middle and high level.Fourthly,this paper uses several game models to analyze the Internet financial regulation in china,thus analyzing the current practice of cooperation between Internet finance and traditional finance in China,and drawing conclusions that similar Internet financial enterprises will seek illegal development due to the pursuit of excess profits and form game equilibrium in the absence of regulation.Therefore,it is necessary to establish the game between the Internet financial enterprises and the regulatory authorities.Then the evolutionary game model is used to analyze the game between Internet financial institutions and regulatory agencies.It is concluded that Chinese Internet financial regulation should do a good job of top-level design of policy continuity,and improve the efficiency of regulation.After that,the paper does the game analysis of the supply and demand of P2 P model which is current typical representative of Chinese Internet finance to draw conclusions,that regulatory department can reduce the financial credit risk of the Internet finance through the establishment of credit reporting system,increasing illegal restrictions,setting barriers to entry and so on.Fifthly,the efficiency of mixed regulation and separate regulation are analyzed quantitatively from the aspects of cost and income in regulation.It establishes 11 indicators of the four objectives of economic growth,financial stability,financial development and financial equity from the regulation of income and establishes different cost indexes of separate regulation and mixed regulation from the aspect of regulation cost.Using EVIEWS software,this paper makes an empirical research on the realization of Internet financial regulation,and draws a conclusion that the mixed regulation can be more efficient through the regulation of cost savings than the case of separate regulation for the overall efficiency of Internet financial regulation.From the realization of the four regulatory objectives,separate regulation has higher regulation efficiency for economic growth,Internet financial stability,development and efficiency at least for our current Internet financial development degree,but mixed regulation will have certain advantages considering the fairness and efficiency of the whole target.Finally,this paper puts forward some policy suggestions on Internet financial regulation in China.The first suggestion is to reshape the basic concept of Internet financial regulation,including firm macro-regulation orientation and set up scientific regulatory principles on the basis of clear goals.The second suggestion is to improve the Internet financial regulatory laws and rules,including improving the level of regulatory legislation,improving the regulatory mechanism of traditional financial institutions,improving the legal system of Internet finance and improving the Internet financial technology standards.The third suggestion is to innovate the Internet financial regulatory mechanism,including improving the subject of Internet financial regulation,improving internet access standards and improving the Internet financial regulatory standards.The fourth suggestion is to enhance the pertinency of Internet financial risk regulation,including the implementation of special regulation means,strengthening special risk regulation,strengthening risk classification prevention and control,strengthening financial consumer rights protection,eliminating and breaking big data monopolies.The fifth suggestion is to strengthen the external constraints of Internet finance.Some recommendations are put forward in four aspects: strengthen the rule of law constraints,market constraints,self-discipline constraints and self restriction in Internet finance.The sixth suggestion is to promote the construction of Internet financial regulation supporting system,including speeding up the construction of social credit system,improving the risk compensation mechanism,implementing fiscal and taxation support system,accelerating the training of human resources and promoting the informal institution innovation.