Study On Impacts Of Financial Liberalization And Internet Finance On Risk-taking Behaviors Of Commercial Banks

Financial liberalization is not only the process of continuous improvement of financial markets,but also the goal of financial market reform.Banks play a important role in the financial market,the commercial bank's business focus,development direction,profitability,management,market status and so will be affected in the process of financial liberalization,with the rising of competition and the liberalizing of interest rate.In this way,the risk-taking behaviors of commercial banks will also be affected.Internet finance was born with the promoting of China's financial liberalization,have gradually gone into people's daily life after the development of the blowout in 2014.In order to capture market and the profit,the traditional financial institutions have to adjust their business scope and development strategies in the face of fierce competition.And even some banks try to have connections with internet finance in order to enhance customer experience,effective management and risk management.In this situation of financial liberalization and internet finance,we should focus on the change of the commercial bank's risk-taking behaviors,so that we can grasp the power and speed of the financial reform and give some suggestions on the development strategy of commercial banks.The study enriches the theory of financial liberalization and the internet finance,analyzes the inherent impact of the mechanism theoretically between financial liberalization,internet finance and commercial bank's risk-taking behaviors,and also tests the relationship between the three using empirical research and case study.This paper first defines the definition and current situation of financial liberalization,Internet finance and commercial bank risk-taking behaviors,and analyzes the inherent influence mechanism according to its own manifestations.The empirical part uses the panel data of 16 banks in 2008-2015 to test the relationship between financial liberalization,Internet finance and commercial bank risk-taking.At last,the study analyzes the relationship between financial liberalization,Internet finance and commercial bank risk-taking according to the generalized moment to estimate the return of the results and the case of Industrial and Commercial Bank of China.The empirical results show that there is a positive correlation between the degree of nonperforming loan rate,financial liberalization and the risk level of commercial banks,the negative impact of Internet financial and commercial banks' risk exposure,and the financial risk of commercial banks.That is,the process of financial liberalization,due to the fierce competition and the loss of the franchise value,the commercial banks face more competition,in order to compete for profits will be risky to make more risk-taking behaviors;Internet finance itself reduces the risk-taking behaviors of commercial banks due to improve the efficiency of commercial banks,risk management level,reduce management costs and increase the level of profitability.And the impact of financial liberalization on the risk-taking level of commercial banks will be weakened,due to the repeated trial and error of Internet finance,to the direction and intensity of financial reform to bring some first-hand experience.Finally,financial liberalization should pay attention to grasp the order of reform,the development of Internet finance should "dance with an anklet",commercial banks should improve the level of service and other recommendations.