Study On The Influence Of Internet Finance On Commercial Banks As Well As On Corresponding Solutions

With the development of Internet technology, Internet finance emerged. The emergence of Internet finance has brought a significant impact on the commercial banks, how to further improve the competitiveness of commercial banks in the new situation, to maintain their core position in the financial industry has very important practical significance to stabilize China's financial system and improve the efficiency of financial support for the real economy.Based on an overview of the basic concepts and models of Internet finance, this thesis detailed analyzes the impact of Internet finance on commercial banks from two aspects of core business and efficiency. In terms of core business, the thesis analyzes the impact of the Internet finance on commercial banks' three core business(debt business, asset business and intermediary business) one by one, in order to explore the impact of Internet finance on profitability of commercial banks. In terms of efficiency, based on the measurement of commercial banks' three efficiencies(comprehensive efficiency, technical efficiency and scale efficiency) by DEA, the thesis analyzes the impact of Internet finance on commercial banks' three efficiency by vector autoregressive, and analyzes the direction and time delay characteristics of the impact by impulse response function.Conclusions of the study: in terms of the core business, Internet finance brings a negative impact on commercial banks by eroding their market share, weakening their monopoly position and competitive advantage, reducing their profit; on the contrary, in terms of the efficiency, Internet finance has a significant positive impact on the comprehensive efficiency, technical efficiency and scale efficiency of commercial banks, it enhances the efficiency of commercial banks through forced mechanism, it has a positive impact on the operation of commercial banks. This thesis argues that Internet finance is both an opportunity and a challenge for commercial banks. In the evolution of the Internet finance, commercial banks should actively face the challenge and timely seize the opportunity, regard impact as a driving force, take “competition and cooperation” as the overall plan of the response to Internet finance, not only to beneficially cooperate with Internet finance, and actively expand the overall market share, but also to moderately compete with Internet finance, and strive to improve their own competitiveness.