Study On The Financial Risk Of Commercial Banks In The Era Of Internet Finance

With the development of the Internet,we are now in a new era: the era of Internet Finance.Internet Finance has a profound impact on the change of our lives.Since 2017,the big five state-owned banks have been carrying out cooperation activities with the five major internet financial companies,which has injected new blood for the financial service revolution.The important task of the commercial bank's financial work is how to deal with possible financial risks actively and effectively,the prosperity of internet finance and the change of payment methods.The loss of commercial bank customers is a manifestation of the rapid development of Internet finance companies,and the financial risks will increase accordingly.Therefore,this paper raises the question that why commercial banks cooperate with internet finance companies.Then this paper firstly theoretically discusses the adverse impact of internet finance on the commercial bank's finances.And then based on the analysis of financial profit index of listed commercial banks,this paper studies the financial profitability index of listed commercial banks in recent years.This paper has drawn more than a dozen listed commercial banks to assess their profitability.The indicators adopted are the three indicators of return on equity(ROE),net profit growth,and return on total assets.Based on the analysis of the three indicators,it can be seen that the profitability of major commercial banks has been declining in recent years.It can be seen that the prosperity of Internet finance continues to affect the bank credit model and business scope.The impact of internet finance will cause certain risks to major commercial banks' finances.Further more,the paper studies the response to the CCB's financial risks in the era of Internet finance.This paper proposes to strengthen the cooperation with Internet finance companies in response to the financial risks of commercial banks in the era of Internet finance,explore new directions of commercial banks development and new business channels,enhance the profitability management level of commercial bank financial risk indicators and cultivate professional talents for financial risks.Based on the above four measures,the paper shows clearly thatcommercial banks should take precautions against financial risks in the context of Internet finance.Finally,the case analysis method is used to study the response to the CCB's financial risks in the era of Internet finance,and the key case is about Construction Bank Financial Risk Response.Since the establishment of China Construction Bank,the scale of assets has been expanding year by year and it is the first commercial bank to cooperate with internet finance companies,so selecting a construction bank has certain significance.In summary,the paper points out that CCB's response to the impact of Internet finance and cooperation with Internet finance companies and other countermeasures,promoting other commercial banks torespond to financial risksactively.