Mechanism Of Internet Finance Influencing On The Change Of Social Financing Structure

The social financing scale has become an important indicator of concern in various fields of society since 2011.With the reform of financial system and continuous emergence of innovative financial products or instruments,the scale of social financing has been increasing rapidly in China,besides the financing structure has also changed dramatically.Especially from the year 2013,the proportion of new RMB loans to social financing scale has begun to rebound from the previous sustained decline,and rise year by year.Therefore it can be inferred that the year 2013 is an important point-in-time for the reversal of social financing structure.Meanwhile from this year on,internet finance in China begun to flourish.Its development has had an impact on traditional financial institutions especially commercial banks,and has profoundly affected traditional financial system in China.Furthermore,the changes in the financial system could inevitably affect the structure of social financing.The related domestic and foreign literatures have already paid attention to the impact of internet finance on traditional banking industry,and the relationship between internet finance and social financing structure,but much deeper researches are still needed.Firstly,the studies on the impact of internet finance on the commercial banks mostly focus on banking business,earnings,efficiency and liquidity,rarely involving the impact of internet finance on the bank loan scale.Secondly,there are few studies on the relationship between internet finance and social financing structure,and even more lack of studies to further explain the mechanism of the two.Thus there is still space for research.The logical line of this dissertation could be seen as “The development of internet finance—the change of bank loan scale —the change of social financing structure”.Firstly,from the perspective of bank loans,the dissertation regards the major financial institutions issuing RMB loans—the traditional banks as research objects,expounds the mechanisms of the influence of internet finance on the changes of social financing structure.On the one hand,internet finance could affect the scale of bank loans by affecting the scale and structure of bank deposits,loan interest rates and asset prices.On the other hand,internet finance could also have a regulatory effect on the traditional transmission channels of monetary policy,thereby affecting the control effect of monetary policy on the scale of bank loans.Secondly,the dissertation verifies the micro mechanism of the influence of internet finance on the changes of social financing structure through empirical analysis.On one hand,it studies the transmission routes and tests mediating effect of bank deposit scale,deposit structure,loan rates and asset prices.On the other hand,it studies the moderating effect of internet finance on both bank lending channel and balance-sheet channel.Finally,the dissertation explores the impact of internet finance on social financing structure changes through empirical analysis on the macro level.There are three main research findings.(1)It is beneficial for the expansion of bank loans to develop internet finance.The scale and structure of bank deposits and asset prices all exert significant mediating effects in the relationship between internet finance and bank loan scale.In addition,the mediating variables also exert serial mediating effects showing “internet finance—deposit scale—deposit structure—bank loan scale”.(2)The development of internet finance has a moderating effect on the transmission of bank lending channel,and weakens its transmission effect.Meanwhile,internet finance also has a moderating effect on the transmission of balance-sheet channel,and strengthens its transmission effect.With the above analysis,it could be concluded that there is a positive correlation between the development of internet finance and bank loan scale.(3)The development of internet finance has a positive impact on the changes of social financing structure.In the initial development stage of internet finance,there is a negative correlation between internet finance and social financing structure.With the further development of internet finance,its impact on social financing structure fluctuates greatly.However,from the overall trend,there are more positive effects of internet finance on structure,which means that the development of internet finance is conducive to increasing the proportion of RMB loans.The dissertation has three innovations.Firstly,based on bank loans perspective,it provides new thought to study the effect of internet finance on social financing structure.As the most important part of RMB loans,the scale of bank loans is an essential aspect of the social financing structure.The dissertation analyzes the influence of internet finance on the scale of bank loans,which is beneficial to deepen the understanding of social financing structure.Secondly,it expands the research on the effect of internet finance on traditional banking industry to the scale of bank loans,and explains the mechanism of internet finance on the changes of social financing structure from the perspective of bank loans,involving four transmission routes and two moderating routes.Finally,it reveals the micro mechanism of the influence of internet finance on social financing structure using testing methods of mediating and moderating effects.Specifically,the mediating effect involves four mediating variables,and moderating effect involves the impact of internet finance on two monetary transmission channels.