Research On The Relationship Between Internet Finance And The Development Of Commercial Banks

The rapid development of internet finance has a great impact on the business structure,payment methods,and marketing methods of China's traditional financial industry.It is very necessary for commercial banks,internet finance,and internet finance to influence the development of commercial banks.China's Internet finance has its own unique characteristics.This paper attempts to explore the relationship between Internet finance and the development of commercial banks from both time and space perspectives.This paper selects quarterly data from 31 provinces from March 2011 to March 2016 for Granger causality testing.Firstly,the unit root test is performed on the selected panel data,and the panel data cointegration analysis is used to verify the long-term causality of Internet finance and commercial bank development under the condition that the panel data is stable.The panel data error correction model is used to further verify The short-term causality between internet finance and commercial bank development.In order to study the spatial effects of Internet finance,first,this paper gives a map of the internet finance development index of 31 provinces through the Internet financial development index;then,this paper constructs an index of Internet finance penetration rate,choosing March 2014 to March 2016.Monthly Internet financial monthly data,and using the Moran's I index to verify the global spatial autocorrelation and local spatial autocorrelation of financial correlation ratios;Finally,using the Wald test method to establish the Spatial Dubin Model(SDM),Analyze the index data of Internet finance and commercial bank development in 31 provinces.From the perspective of the direct and indirect effects of the spatial Dubin model,study the impact of Internet finance indicators on the development of commercial banks in the province and surrounding provinces.The demonstration results of this paper show that,without considering the spatial correlation,theoretically,Internet finance can be used as a unilateral long-term cause for the development of commercial banks.However,in the short term,there is no significant short-term causal relationship between the two.In terms of spatial effects,the direct and indirect effects are analyzed using the spatial Dubin model.The indicators of internet finance have a positive impact on the development of commercial banks in the province,but to a certain extent,they inhibit the development of the surrounding commercial banks.This article gives a targeted policy and recommendations for the coordinated development of Internet finance and commercial banks.