Research On The Competitiveness Of Chinese Commercial Banks Under The Internet Finance

Although the turn of the century "new economy" burst caused global macro-economic operation,but the pace of Internet development did not stop,Internet financial also gradually reveal its unique technical characteristics and operation mode gradually to the penetration of traditional financial forms,and make a fundamental influence on the global financial mode innovation.In the context,commercial banks embrace Fintech with a positive attitude,and have made a lot of research and exploration in promoting the deep integration and innovation of Fintech and banking.At the same time,the academic community has also carried out a wide range of research on the impact of the development of Internet finance on commercial banks.this paper first uses the System Dynamics theory to construct the development system of commercial banks and the simulation model of the system,and demonstrates the impact of the development of Internet finance on the development of commercial banks.Secondly,the paper evaluates the competitiveness of commercial Banks in China from 2007 to 2019,from the perspective of TE and TFP simultaneously with new kinds of RSBM-Max model and RSBM-Max GML model,respectively.It also measures the current competitiveness of commercial banks through TE and takes TFP as one of the indicators to measure the long-term competitiveness of commercial banks.In addition,combined with the results of the simulation,this paper takes TCg as another index to measure the long-term competitiveness.Finally,this paper evaluates the competitiveness of banks with TE,TFP and TCg,simultaneously,and with which,the banks under observation are classified into four types,"superior and strong","superior and but not strong","strong but not superior" and "not superior and not strong".The main conclusions of this paper are as follows:(1)The impact mechanism of the development of Internet Finance on the commercial banks.Under the interaction of various factors in the development system of commercial banks,due to the development of Internet Finance,commercial banks are impacted.By strengthening the R & D and application of Internet technology,commercial banks have developed,and finally promote the development of Internet finance,so as to continue to cycle.(2)Under the constraints of macro and medium environment,such as policy,economy and financial industry,with the development of Internet finance,the traditional business and intermediate business of Chinese commercial banks have been developed to varying degrees by strengthening the research,development and application of financial technology.(3)The results of SD simulation support the fusion theory of the impact of the development of Internet Finance on commercial banks in academic circles.It is believed that the development of Internet Finance will not have a subversive impact on traditional finance,but will realize the improvement and optimization of the functions of traditional finance industry through new Internet Finance Ideas and technologies.In the new competition pattern,the two will be a relationship of competition and cooperation,which is the same as each other through competition and cooperation to achieve common development.(4)The overall current competitiveness of commercial banks.The overall average TE of Chinese commercial banks from 2007 to 2019 is inefficient,which indicates that the overall current competitiveness of the banks in the context of the development of Internet finance is not strong within the inspection range.(5)The current competitiveness of different types of commercial banks.Overall,the TE of the four types of commercial banks is inefficient and which indicates that the current competitiveness in the context of the development of Internet finance of different types of banks is not strong.The TE is presented as "Urban commercial bank > Rural commercial banks > Joint-stock commercial bank > State-owned commercial bank",and the current competitiveness of the state-owned commercial bank is the lowest.The PTE presents as "State-owned commercial bank > Joint-stock commercial bank > Urban commercial bank > Rural commercial bank",and the PTE of large commercial banks is relatively efficient as a whole.This conclusion is consistent with Hypothesis 4 of the system dynamics simulation model,and also consistent with the simulation results,namely,large commercial banks have the strongest Fintech learning ability,followed by Joint-stock commercial banks and urban commercial banks,and rural commercial banks have the lowest Fintech learning ability.(6)The current competitiveness at different stages of the development of Internet finance.First,at the rising stage of Internet finance(2007~2012),the average TE of Chinese commercial banks is generally inefficient,indicating that the current competitiveness is not strong on overall,but the average TE is generally on the rise,with an average annual growth rate of about 6.7%.Second,at the rapid development stage(2013~2015),the current competitiveness of Chinese commercial banks is not strong on the whole,but it has been improved to a certain extent compared with the rising stage of Internet finance.In addition,at the standardized development stage of Internet finance(2016 ~ 2019),the overall current competitiveness of Chinese commercial banks is not strong,but which has been improved to a certain extent.At this stage,the overall current competitiveness of the Urban commercial banks is still relatively strong,while which of the State-owned commercial banks is the weakest,followed by the Rural commercial banks,but which of State-owned commercial banks and Rural commercial banks is on the rise.Compared with the former two stages,the average TE,PTE and SE of Chinese commercial banks have been significantly improved.(7)The overall long-term competitiveness.The TFP of Chinese commercial banks has improved on the whole from 2007 to 2019,but the improvement of TFP mainly comes from the improvement of EC.Therefore,in the context of the development of Internet finance,the long-term competitiveness of Chinese commercial banks is not strong as a whole.(8)The long-term competitiveness of different types of commercial banks.The average TFP of the four types of commercial banks is in a state of progress.Therefore,under the background of the development of Internet finance,the commercial banks as a whole have the ability of sustainable development.However,only the Joint-stock commercial banks have achieved overall progress both in TFP and TCg,so the long-term competitiveness of which is strong,while which of the other three types of commercial banks is weak.(9)The long-term competitiveness at different stages of the development of Internet finance.First,at the rising stage of Internet finance(2007~2012),commercial banks have the ability of sustainable development,but this ability mainly comes from the promotion effect of improving management level on EC,rather than from TCg.Therefore,according to the commercial banks as a whole do not have strong long-term competitiveness in the rising stage of Internet finance while measuring with both TFP and TCg.Second,at the rapid development stage(2013~2015),the commercial banks as a whole do not have strong long-term competitiveness.The main reason is that the overall average TCg of the Urban commercial banks is less than 1 due to the TCg regression,while the TFP and TCg of the other three types of banks are in a state of progress,indicating that the banks have strong long-term competitiveness.In addition,at the standardized development stage of Internet finance,commercial banks as a whole are not strong in competitiveness for a long time,because of the TCg as a whole is in a state of regression.The overall TCg regression of the State-owned commercial banks and Urban commercial banks is the reason for the overall TCg regression of all the sample banks.While the other two types of banks have strong long-term competitiveness.(10)According to the three-dimension analysis of TE,TFP and TCg,the overall competitiveness of commercial banks is not strong under the background of the development of Internet finance,which is generally manifested in two situations: "strong but not superior" and "not superior and not strong".The "not superior and not strong" commercial banks accounted for the majority.Viewed from different types of banks and different stages of the development of Internet finance,the above two situations are also presented.It shows that banks need to improve their competitiveness from two aspects: the current and the long-term competitiveness.The main innovations of this paper are as follows:(1)Innovation of research methods.This paper analyzes the impact of Internet finance development on commercial banks through the system dynamics research method,in order to demonstrate the different views on the impact in the academic community,through the combination of qualitative analysis and quantitative analysis.(2)Theoretical model innovationFirst,the Innovation of the efficiency measurement model.In this paper,a new RSBM-Max model for efficiency measurement is proposed.Compared with the SBM model and its extension models,the RSBM-MAX model has the following advantages: Firstly,the closest point on the frontier is used as the projection point;Second,it can deal with undesirable outputs;Thirdly,the polar coordinate theory is introduced into the SBM-Max model,and the weak disposable relationship between outputs is considered.Therefore,compared with SBM and its extended model,the RSBM-Max model has stronger economic significance.Second,the Innovation of TFP measurement model.This paper attempts to construct a new RSBM-Max GML model for measuring TFP based on RSBM-Max model.The model belongs to the global reference model.The TFP measured by the model not only has transitivity,but also avoids the problem of infeasible solution of the technology progress index under VRS.