Research On The Impact Of The Internet Financial To The Profitability Of Commercial Banks

Nowadays with the popularity of social networks and the formation of financial disintermediation trend, we embraced the era of the Internet finance. The birth of the Internet finance is the landmark event in human history. The year of 2013 was the first year of China's Internet finance, after two years, the impact of Internet finance on traditional commercial banks have gradually appeared and intensified.At the beginning, this paper describes the following issues. First, the history of the development of Internet finance and the current situation and models of Internet finance including payment,P2 P online loan,E-bank, Crowdfunding, Internet securities and so on. the second issue is features of Internet finance such as the employment of big data,diverse management model,open management environment as well as operation,highly efficient service,and inclusive finance. The following part analyses factors like capital scale, interest margin, intermediate business, operating efficiency and asset quality which all affects the profitability of commercial banks. Meanwhile empirical analysis on the profit model of commercial banks is embedded in this part. In the core part,the influence of Internet finance on the profit made by commercial banks is illustrated from the perspectives of assets,liabilities and intermediate business. Finally a couple of practical suggestions are put forward to promote the positive role played by Internet finance in economy especially banking industry.