Study On The Effect Of Internet Finance On The Profitability Of Commercial Banks

In the face of Commercial Bank net profit growth rate continues to decline,the interest rate marketization to spread income as the main profit model will be difficult to continue,commercial banks are facing serious difficulties.While the earnings of Internet financial financial transactions not only improve the efficiency,reduce the cost of financial transactions,the business area of traditional commercial banks effectively to supplement,but in many business areas occupy the original source of profit of commercial banks.Therefore,Internet banking has a profound effect on the profit structure of commercial banks.Firstly,the status quo of China's commercial bank profit structure and Internet banking are analyzed,then the related theory on the basis of the development of the Internet,from net interest income and non interest income of the two aspects discussed three main modes of Internet financial influence mechanism on profit structure of commercial banks.Finally,the third quarter of 2013-2015 the forth quarter of 16 listed banks Chinese quarterly data based on the selected non interest income to total operating income as the dependent variable,the third party payment scale,P2P net loan scale and Internet financial scale as the independent variable,construct a panel data model,an empirical test of the Internet The influence of net finance on the profit structure of commercial banks.Research shows that the development of Internet banking and Commercial Bank of China net profit growth rate decreased year by year,non-performing loan rate rise,the profit dilemma of commercial banks is more severe.While the commercial bank constantly diversified business model development,but still with the traditional interest income,non interest income business development is slow,non interest income sources.In addition,from the influence of mechanism,the third party payment of Internet banking and commercial banks will convert idle demand deposits for large time deposits,increased bank interest expenses at the same time,commercial banks should be diverted through the intermediary business,the fees and commissions reduced.P2P net loan business by shunting The bank loans affect the bank's interest income,but the commercial bank loan business is more of a complementary relationship,so the impact is relatively small.In addition,P2P net loan through direct financing chain,the banking system idle demand deposits,capital flow to reduce the non interest income,but the overall effect on the non interest income of commercial banks is very small.The empirical results show that the third party payment of non interest income of commercial banks accounted for has a significant positive effect,Internet banking and credit P2P networks have a positive impact on the ratio of non interest income,but the impact is not significant.In general,the Internet financial development of commercial bank non interest income has a positive impact the proportion of operating income,while the joint-stock banks and city banks is more significant,relatively weak in state-owned banks.Therefore,although Internet banking of commercial banks profit impact,but is helpful to optimize the profit structure of commercial banks,promote the single mode of commercial bank profit model from net interest income gradually The mode of balanced development of interest income and non interest income.