Empirical Research On The Impact Of Internet Finance On Regional Capital Liquidity Risk

The subprime mortgage crisis,which originated in the US in 2007,has raised the awareness of risk management to a new level.The corresponding policies promulgated by the Basel Committee and the China Banking Regulatory Commission have strengthened the management of liquidity risk.At present,the financial risk events in various regions of China are increasing gradually.It is urgent to strengthen the management of capital liquidity risk in China's economy.With the continuous development of Internet finance,regional economy is becoming more and more integrated,and regional capital flows are more liberalized.At the same time,the financial system is more complex,which brings more risk sources of financial crisis.In past academic studies,most scholars focused on the impact of Internet Finance on regional overall risk and did not make specific research on the impact of regional capital mobility.This article hopes to prove the relationship between Internet Finance and regional capital flow risk through the empirical research of this article,and compare it with different regions.This paper selects 31 provinces' data in China from 2012 to 2016.We use principal component analysis to build Internet financial development index as a proxy variable to measure the level of Internet development.We use the improved investment savings model to measure regional capital liquidity risk.Through basic general regression,spatial lag regression and spatial error regression,we can see that regional liquidity risk has spatial spillover effect.The relationship between the development of Internet Finance and the liquidity risk of regional capital is obtained.Through the empirical study,we get the following main conclusions:(1)The potential risks of abrupt interruption of regional capital flows in provinces and cities in China generally increase with time trend.This upward trend shows that there is a more serious regional liquidity risk in China.(2)China's provinces and cities in the Internet financial development shows the overall trend of rising time,and using the method of cluster analysis on the development of each province level classification results show that the economy is relatively developed provinces,the Internet development level is higher,especially in the eastern coastal areas.(3)The impact of capital across the region of the Internet from the perspective of financial development of the regional capital risk based on liquidity,has very significant significance to introduce the spatial effect factors of liquidity risk existing in surrounding provinces and its influence has positive spillover effect on the target domain.The empirical results show that the Internet financial,liquidity risk events,the Internet financial index in the provinces of high capital flows sudden interruption risk,in addition to regional innovation capability will increase the risk of capital flows,the increase of foreign direct investment,improve the government to pay the money supply and macro has inhibitory effect on Regional capital flow risk.On the basis of this,we put forward the policy suggestions on how to develop Internet Finance and how to improve regional risk resistance.