Research On The Effects Of Internet Finance On China’s Commercial Bank’s Efficiency

Commercial banks are the main body in the reform of China’s financial system. Its development vitality and efficiency play a vital role in the whole of China’s national economy and social stability, which is one of the major issues related to the lifeline of the national economy and the country’s financial security and stability. The meaning of the bank efficiency is the bank relative relationship of the input and output or the cost and income in business activities. Speaking from the essence, the bank efficiency is bank effective allocation of its resources, the competitive ability of the banking market, input-output capability and sustainable development capability in general.Innovation and popularization of network information technology has given rise to the vigorous development of the Internet finance which has brought huge impact to commercial banks with its convenience, economy, interactivity and other advantages, robbing a large number of customers from commercial banks. Under this circumstances, commercial banks, one after another, change their business philosophy, constantly improving their operational efficiency to cope with the impact brought by the Internet finance, which makes the study of the Internet finance influence on efficiency in the commercial banks have deeper theoretical and practical significance.Based on the review of the relevant literature, to begin with, this paper analyzes the current situation of Internet finance and commercial banks, and also analyzes the impact of Internet banking on the commercial banks. Then this paper use Malmquist index model which based on the DEA model to calculate the productivity index of China’s commercial banks, and finally this paper build a panel data model to analyze the impact of Internet finance on the efficiency of China’s commercial banks. The results show that Internet finance has a positive impact on the productivity, pure technical efficiency and scale efficiency of commercial banks and state-owned commercial banks. It has positive impact on the productivity and pure technical efficiency of joint-stock commercial banks, but the impact on scale efficiency is negative.