The Influence Of Internet Finance On The Innovation Ability Of Commercial Banks In China Under The New Situation

In recent years,the rapid development of Internet finance has caused a significant impact on the banking.The best way for banks to respond to the impact of the Internet is their own innovation.This paper uses the data from 2011 to 2017,and through empirical analysis at both the macro and micro levels,studies the impact of internet finance on bank innovation capabilities.At the macro level,by using multivariate regression analysis through the introduction of principal component analysis,the model is divided into two models for the empirical research of the banking as a whole.The following conclusions are drawn:First,There is an inverted U-shaped trend relationship between Internet finance and non-interest income as the first indicator of the overall innovation capability of the banking,and the turning point has appeared in 15-16 years.Second,Internet finance has a negative impact on mobile banking and online banking transactions as the second indicator of the overall innovation capability of the banking.At the micro level,through the static panel data method and the dynamic panel data method handled by GMM,the impact of Internet finance on the innovative capacity of large state-owned banks,joint-stock banks,and commercial banks is divided into three models for empirical research,and the following conclusions are drawn:There is an inverted U-shaped trend in the ratio of non-interest income between internet finance and state-owned banks representing the innovation capability index,and the turning point has appeared in 2014-2015.Second,There is a U-shaped trend relationship between Internet finance and the non-interest income share of joint-stock banks and city commercial banks which represent their innovation capability indicators.,and the turning point of the U-shaped curve of the joint-stock bank has appeared in 2015-2016,but the turning point of the U-shaped curve of city commercial bank will appear in the next year.In summary,due to the interactive effects of counterforce effect(technical spillover effect)and encroachment effect(competitive effect),the impact of internet finance on the index of bank innovation ability-the non-interest income ratio has a U-shaped or inverted U-shaped trend relationship in time series,and the trend relationship of different banks is not the same.In addition,internet finance has a negative impact on banks' innovative ability indicators,mobile banking and online banking transactions.Therefore,different types of banks should combine their own background and advantages,”in accordance with local conditions" to innovate,enhance their own innovation capabilities and intermediate business profitability,optimize their own service channels and models to deal with the impact of Internet finance.