The Study On The Impact Of Internet Finance On Commercial Banking System Stability Of China

In recent years,the rapid development of Internet technology has promoted the integration of the Internet and the financial industry,and “Internet finance” has gradually become a new focus of people's attention.On the one hand,different from the Internetization of traditional financial services,Internet finance changes people's consumption patterns and living habits and weakens the financial intermediary function of commercial banks,affecting the stability of commercial banks.On the other hand,as a new form of financial industry,Internet finance has stimulated the vitality of China's financial market and become the driving force for commercial banks to implement business innovation because of its "catfish effect".In this context,the study of the impact of Internet finance on the stability of commercial banks will help commercial banks to recognize the current situation of financial industry and be of great significance to their future transformation and upgrading.This paper has five parts.The first part is the introduction,including the background and significance of this topic,literature review,and the research approach of this paper.The second part is an overview of Internet finance.Based on the theory of financial intermediation and financial innovation theory,this paper analyzes the rising and development status of China's Internet finance.The rapid development of information technology and the vast market space are the favorable external environment for the survival of China's Internet finance,while the high degree of integration between itself and financial functions is the inherent logic of the full development of Internet finance.The third part is the theoretical analysis of the impact of internet finance on the stability of China's commercial banks.Commercial bank stability theories show that the fragility is the intrinsic characteristics of the commercial banks with high leverage,this paper points out commercial bank's main risk in the new normal economy of China,and analyzes the Internet financial development mechanism of the impact on the stability of the commercial banks.On the one hand,the technology spillover effect of Internet finance accelerates the product innovation of commercial banks.Internet financial,on the other hand,with its high efficiency and low cost of operation model hits dominance of commercial banks as intermediaries,shunts theclient resources and business of commercial banks,causing a negative effect on commercial bank management.The fourth part is an empirical analysis of the impact of internet finance on the stability of China's commercial banks.This paper selects the development scale of third-party payment and P2 P lending to measure the development level of China's Internet finance,evaluating the stability of China's commercial banks from four aspects: asset quality,liquidity,profitability,and capital adequacy.The regression analysis proves that the development of internet finance does have a negative impact on the stability of China's commercial banks.The fifth part is to make conclusions of this paper,then some relevant countermeasures and suggestions for the stable development of commercial banks has been given at the end of the paper.