An Empirical Analysis Of Profitability Of Internet Banking For 16 Listed Commercial Banks

With the increasing maturity of Internet technologies,Internet finance is changing the way people spend,manage,save,and loan financial behaviors.Internet finance quickly occupies a certain share in the financial market because of the advantages of low cost,high yield,and wide coverage.At the same time,it has caused a serious impact on some basic businesses such as deposits,loans,wealth management,and payment and settlement of commercial banks.This paper intends to use qualitative and empirical analysis methods to thoroughly study the adverse effects and operating mechanisms of Internet finance on the profitability of commercial banks.Finally,with reference to these adverse impacts and problems,it provides timely and effective coping strategies and recommendations to the future deep-seated development of commercial banks.First of all,this paper reviews and evaluates the research results and development status of the current international profitability theory for internet finance and commercial banks by consulting domestic and foreign literature and data analysis.It also elaborates the definition of internet finance and the specific meaning and evaluation indicators of profitability of commercial banks.At the same time,it elaborates on the theoretical concepts related to internet finance.In addition,a qualitative analysis of the status quo and operating mechanism of internet finance in commercial banking in the main promotion business was analyzed.Secondly,based on the financial data of 16 listed commercial banks from 2012 to 2016,this paper collates and quantitatively analyzes the panel data.Taking the return rate of commercial bank assets as an explanatory variable in the model of this paper,the three major modes of internet financial transactions include:third-party payment transactions;P2P internet loan transactions and internet fund transactions as explanatory variables of empirical analysis;bank's non-performing loan rate The proportion of non-interest income,asset size as a control variable.The three transaction modes of internet finance have a negative correlation with the return on assets of commercial banks,which shows that in recent years,the profitability of commercial banks has continued to decline,which undoubtedly caused huge losses for commercial banks in China.Finally,based on the problems and phenomena that the thesis has shown in the concrete demonstrations of commercial banks,the authors should provide reference data and opinions on the adverse effects of internet finance on commercial banks.First,it is necessary to strengthen the renewal of Internet thinking and at the same time deepen the optimization experience for users.Second,positive innovation and reforms are needed to improve the internalization of financial services.Third,it is necessary to increase cooperation with Internet companies and strive to complement each other's advantages.To achieve a mutually beneficial and win-win situation.Fourth,we must speed up the transformation of traditional banks and proactively expand diversified businesses in order to increase the efficiency of banks.