Research On The Impact Of Internet Finance On Credit Risk Of Commercial Banks

Commercial banks play a decisive role in Chinese financial market.As an important channel for social financing,its operations and development are related to the country's overall macroeconomic stability and security.Therefore,the management and prevention of credit risks should be one of key strategies for various commercial banks.The credit risk of a commercial bank refers to the default risk that the borrower cannot complete debt service due to subjective or objective reasons,thus causing economic losses to commercial banks.According to the latest data from the China Banking Regulatory Commission,the non-performing loan ratio of Chinese commercial banks was 1.74%.Although the quarter-on-quarter decline was slight,the pressure for higher non-performing loans remained.Therefore,the prevention of credit risk is still the most important task of commercial banks.Looking at Chinese macro market environment,Chinese Internet finance has entered a period of rapid development since 2013.Relying on an electronic network platform,it integrates and innovates modern information technology with traditional financial services,and realizes the deep integration of financial flows represented by finance and information flow represented by the Internet.With the increasing influence of Internet finance in the fields of payment and settlement,capital financing,and wealth management,it has had a profound impact on the operation of traditional financial institutions in China,and thus has received extensive attentionfrom the academic community and the financial community.This article links the credit risk of China's commercial banks with the rapid development of the Internet finance at present,first analyzes the causes and status quo of China's commercial bank credit risk,and then after reviewing the development model and current situation of internet finance,the paper analyze the impact of internet finance on credit risk of commercial banks,and then empirically analyzes the changes in the credit risk level of commercial banks under the background of internet finance.Based on the availability and accuracy of data,this paper selected the panel data of 13 commercial banks to construct an econometric model spanning from 2013 to the third quarter of 2017,with a total of 19 quarters.Through empirical research to explore the impact of Internet finance on the credit risk of China's commercial banks,the main research results show that the development of Internet finance can reduce the level of credit risk borne by commercial banks.This is due to the fact that the development of internet financing platforms and Internet wealth management services will promote the diversified development of commercial banking business structures,reduce their dependence on traditional credit businesses,and in turn reduce the level of credit risk borne by commercial banks.In addition,the rise and development of Internet finance has become a catalyst for commercial banks to innovate in technology.Combining the best technologies of the internet with the characteristics of commercial banks,banks have also increased their risk assessment during business operation.In particular,the recognition of credit risks has reversed the information weakness of commercial banks.With the promotion of technological development,commercial banks can effectively enhance their risk management capabilities and efficiency,and thus their level of credit risk can be reduced.