| July 2015, the people's bank of China released the "Guiding Opinions on Promoting the healthy development of Internet finance ". Internet finance is the new financial business model employed by traditional financial institutions and Internet companies (hereinafter collectively referred to practitioner organizations) by use of Internet technology and information and communication technology to provide financing service, payment service, investment information and intermediary services. In recent years, with the continuous development of the Internet finance, and constantly improving financial supervision, the Internet finance has brought unprecedented challenges to traditional commercial banks, and the following businesses has been influenced, which include the deposit business, such as demand deposits, time deposits and savings deposits, and the short and long term loan business targeting at individual and companies as well as the payment and settlement bank card business. The profitability of all above businesses is subject to varying degrees of impact and therefore impact the total profitability of commercial banks.Based on the impact of the Internet finance have on the profitability of commercial banks, this article analyzed the competitive situation of Internet finance and traditional commercial banks in different businesses respectively by using specific data and further elaborated the impact of Internet finance on the profitability of commercial banks. Besides, this article also constructs an empirical model of Internet finance's impact on the profitability of commercial banks in order to verify the the extent of adverse shocks that Internet finance have brought to the profitability of commercial banks. In the end, this article also tries to provide some specific measures and suggestions for commercial banks to deal with the competition of the Internet finance in the context of marketization of interest rate and financial regulatory reform. |
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