The Impact Of The Internet Finance On Commercial Bank Credit Rationing

As China’s economy continues to develop,the financing needs in financial markets are expanding.But in the credit markets,there is always a part of the borrower’s financial needs can not be met or only partially met,the case is referred to credit rationing.Commercial bank credit rationing generated from the liquidity,safety and profitability of their business needs,even in the presence of excess loan funds of commercial banks may also choose to reject certain borrowers,which is part of borrowers,mostly credit market vulnerable groups,namely individuals or small and micro enterprises.The rise of the Internet Finance have impacted to this market environment,because the vulnerable groups who have became the main force of the economic development is the main customer of the Internet Finance platform,the channels for the petty loan have been broaden by the Internet Finance platform.Facing to the impact on the traditional credit business of commercial banks,research on the effect of the Internet Finance platform to commercial bank credit rationing is imperative to the banks.Taking the current credit market environment,based on research by the impact mechanism of the Internet Finance platform for commercial bank credit rationing,modified the assumptions of S-W models from the information,risks,costs,mortgage four aspects and re-derivation,analysis the influence of the Internet Finance platform to commercial bank credit rationing,provided directions to help small business and micro-finance reform and development of commercial banks.The Internet Financial platform improve the information asymmetry between banks and enterprises,strengthen efforts to control the risk,reduce the cost of credit and collateral costs,based on the model,these have been weakened credit rationing in the credit market,to fill the blank of commercial banks business.Commercial banks can proceed from the four aspects to make a change of the traditional credit business:adjust its business structure,weakening credit rationing;perfect line rating,risk control mechanism innovation;to accelerate the pace of reform,full service innovation;explore the blend modes,optimize the market environment,only strengthened their competitiveness,but also to help small and micro enterprise development.