A Study On The Impacts Of Internet Finance Upon Commercial Banks' Performance

In recent years,the In ternet information techno logy has been widely applied in different social sectors,especially the In ternet finance,represented b y P2 P Onlin e Lending,Crowdfunding,Third-Party Paym ent,etc.,which is boom ing at the speed beyond people's imagination.For the traditi onal financial industry,it is not only an opportunity,but also a challenge.Under the above research background,this thesis expounds the relevant research results about Internet finance b oth at home and abroad in detail.Based on summarizing the predecessors' research results,the theoretical analysis on the impacts of Internet finance upon comm ercial bank's performance is conducted from both positive and negative aspects.Following two hypotheses are put forward: firs t,the Internet finance would have negative im pact on the total factor productivity of commercial banks by means of striking the co mmercial banks assets,liabilities an d intermediary business;Second,through Demonstration,Competition,Talents Mobility and business Linkage Effects,the Internet finance brings technology spillovers to commercial Banks.Hence,the developm ent of the Internet f inance contributes to the improvement of the commercial banks' operating performance.To test the m entioned two hypotheses,firs tly,by adopting the m ethod of DEA(Data Envelopment Analysis)and Integrate Index Method,the total fact or productivity of Chinese commercial Banks and the Intern et financial developm ent index are measured and calculated.In accord ance with related literatures and researches,the control variables are selected and the measurement model is set.Secondly,employing the GMM method(generalized method of moment estimation)of dynamic panel to return econometric equation.Lastly,summ arizing the research conclusion of the thesis in accordance with the regres sion results.The research results indicate that the Internet finance has im pact upon commercial bank from both positive and negative aspects: on one hand,the Internet fina nce permeates the traditional busines s of commercial Banks from several areas,and br ings a certain of impacts to commercial banks,which reduces the operating efficien cy of comm ercial banks.On the other hand,through De monstration,Competition,Talents Mobility and business Linkage Effects,etc.,the Internet finance bri ngs technology spillovers to commercial banks.The commercial banks also can improve th eir productivity rate by absorbing the technology spillovers of the Internet finance.The research conclusion of this thesis has the following four enlightenm ents for commercial banks: firstly,the needs to fu lly realize the im pacts and challenges brought by the Internet finance and be aw are of its own disa dvantages;Secondly,fully aware of the advantages of Internet finance in te rms of technology,increasing the investment in information technology and improving its own technological level;Thirdly,since the Internet fi nance can make breakthrough of the bottleneck in terms of scale so as to realize th e Long Tail Effect.Therefore,it will threaten the retail banking business by bypassing the scattere d low net worth individuals of the traditional commercial banks;Fou rthly,the relationship between the commercial banks and Intern et finance is not just as s imple as co mpetition.Through th e intersection,complementary advantages and resource sharing,both party can achieve win-win goal.