Research On The Influence Of Financial New Business Mode Regulation On The Performance Of Commercial Banks

In the early stage of the development of new financial forms,regulators adopted an inclusive regulatory attitude.Inclusive regulation is mainly reflected in the relaxed market access threshold,which plays a positive role in promoting financial liberalization and alleviating financial exclusion.New financial forms,however,in the effective price risk,to reduce the financing cost is still has many problems,and because of the lack of financial licenses and basic financial regulatory elements such as capital management,and financial disorder spread of the new formats,which lead to market failure phenomena of the formal financial system cause serious negative externality impact and social order.In this context,the State Council organized the People’s Bank of China and other ministries and commissions to hold a special meeting on Internet Financial Risks rectification in April 2016,and issued the Implementation Plan for Special Rectification of Internet Financial Risks,aiming to protect the public interest,enhance the compliance of financial innovation,and reduce the negative externalities of financial innovation.Previous studies focused on the impact of new financial forms on traditional deposit and loan business and risk taking of commercial banks.However,as an important signal of the transition from inclusive regulation to inclusive prudential regulation,"Internet financial risk Regulation" is an important signal of whether commercial banks have become the beneficiaries of regulation,and what impact does this have on bank performance?It still deserves further analysis.In other words,the regulatory shift of the new financial industry provides us with an excellent research scenario to illustrate the need for fintech regulation.On the other hand,the existing research on the performance of commercial banks mainly focuses on profitability and risk taking.as China’s economic development has entered a new normal,how to improve the quality and efficiency of bank services to the real economy has become an important issue facing the current financial development.in 2021,the Ministry of Finance issued the Measures for the Performance Evaluation of Commercial Banks,aiming to enhance the service of banks to the real economy and guide the high-quality development of banks.However,there are still few studies on the ability of banks to serve the real economy.Therefore,this paper further expands the related scope of bank performance,including the ability of banks to serve the real economy into the empirical study of bank performance,and analyzes in detail the policy effect of the regulation of new financial forms.the relevant contents and conclusions of this paper are as follows:First of all,based on the economic functions of Banks to expand the study of bank performance related category,it creates liquidity as the important indicators of bank service entity economy ability,analyzed the financial supervision of new forms of banking services,the effects of the real economy,the results showed that the financial regulation of new forms through enhancing bank deposit-taking franchise,thus promote the bank’s liquidity creation,Enhance the function of banks to serve the real economy.Further research shows that the policy effect of financial new form regulation on banks is mainly reflected in the balance sheet,rather than off-balance sheet.the positive effect of the policy is more significant for banks with great pressure of capital regulation and high dependence on deposits and loans.the mechanism analysis shows that the regulation of new financial forms mainly promotes the creation of bank liquidity by improving the debt structure and reducing the cost of debt.Secondly,this paper further inspection of the financial regulation of new forms of bank risk bearing,the influence of the research results show that the financial regulation of new forms is helpful to guide the deposit back,as a reliable source of funds,bank bank deposit franchise consolidate weaken the bank’s risk motive,this shows that the new financial regulation of the formats in terms of bank risk bearing,also have positive external effects.This held true even after a series of robust regulations.the results are helpful to understand the relationship between financial innovation,financial regulation and bank risk-taking.Meanwhile,regulators should guard against excessive impact of regulatory asymmetry on banks.Then,this paper uses stochastic frontier analysis(SFA)to construct bank profit efficiency index,and tests the influence of financial new business regulation on bank profit efficiency.the results show that the regulation of new financial forms significantly improves the profit efficiency of banks.Through the analysis of bank spreads,it is found that the regulation of new financial forms reduces the cost of banks’ liabilities,but has no significant impact on the loan interest rate,indicating that after banks gain cost advantage,they do not increase the capital cost of the real economy.the mechanism test shows that the regulation of new financial forms can improve the profit efficiency of banks by reducing the channel of interest payment cost.In addition,this paper constructs the financial technology index of the bank itself by using the web crawler technology and factor analysis method.the research finds that the financial new form supervision can help improve the financial technology development of the bank itself,and the financial technology development of the bank can help strengthen the policy effect of the financial new form supervision through the analysis of the regulatory effect.the research results play an important role in improving the high-quality development of banks and promoting the transformation of banks into fintech.Finally,as an important off-balance sheet liability business of banks,this paper continues to explore the impact of new financial formats and their supervision on banks’ financial products.It is found that the new financial forms enhance the motivation to attract "savings" with high interest by increasing the expected return rate and issuance scale of bank finance,facing the deposit diversion pressure brought by the new financial forms,banks will strengthen regulatory arbitrage through shadow banking business.Secondly,the regulation of new financial forms can reduce the motivation of banks to collect "deposits" with high interest,which means that small and medium-sized banks,which are more affected by the impact of new financial forms,have been improved to a greater extent after the regulation.Secondly,the mechanism research shows that the new financial industry supervision can improve the bank’s liquidity,and then alleviate the motivation of collecting "savings" with high interest.Heterogeneity test shows that regulatory policies have a greater impact on short-term and floating financial products.With the help of regulatory policies,promoting the net worth transformation of bank financial management will not only promote the process of interest rate liberalization,but also weaken the regulatory arbitrage behavior of banks.the research in this chapter is helpful to clarify the relationship between new financial forms and bank financial products.The possible innovations of this paper are as follows:(1)This paper expands the research on the development of new financial forms and commercial banks.the existing literature on the impact of the development of new financial forms on commercial banks focuses on the impact of bank assets and liabilities business and risk taking.from the perspective of banks’ deposit franchise,this paper takes "Special rectification of Internet financial risks" as an important event of the transformation from inclusive regulation of new financial forms to inclusive prudential regulation,and focuses on evaluating the policy effect of new financial forms of regulation on bank performance.the research in this paper helps to understand the externalities of fintech regulation.(2)Following the development path of "financial repression--financial innovation--financial inclusion--Inclusive regulation--Market failure--Inclusive prudential regulation",based on the theory of financial regulation,this paper systematically reviews how China’s new financial business forms evolve from inclusive regulation to inclusive prudential regulation.Inclusive regulation emphasizes a relaxed environment for innovation,while inclusive prudential regulation aims to limit the boundaries of new financial forms.The study of this paper helps to reveal the dynamic relationship between financial innovation,financial regulation and bank economic functions.Inclusive prudential regulation is an important prerequisite to protect financial technology innovation and prevent market failure.(3)as for the performance of commercial banks,the existing literature mainly focuses on the profitability and risk-taking of banks.However,as China’s economic development enters the new normal,the quality and efficiency of banks’ service to the real economy has become an important issue facing the current financial development.According to 2021,the Ministry of Finance issued "commercial bank performance evaluation method" could be divided into bank bank performance ability to service the real economy,bank risk and bank profit efficiency from three aspects,and based on bank economic functions,it creates liquidity level as a measure of bank service as an important indicator of the real economy,to further expand the research category of the commercial bank performance,Reflect bank performance in practice more comprehensively.(4)the above performance research on banks mainly focuses on banks’ on-balance sheet business.in addition,this paper chooses financial products,the off-balance sheet business of banks that can better reflect the marketization degree of interest rates and the characteristics of regulatory arbitrage,as the research object.Based on the micro data of financial products of listed banks in China,the catfish effect brought by the new financial business form and the external effect produced by supervision are explained from the micro perspective,which provides a certain reference for the supervision layer to carry out micro prudential supervision.