Study On The Impact Of Internet Finance On The Profitability Of Chinese Commercial Banks

In recent years,our country has made great progress in science and technology,which is mainly due to the continuous improvement of big data and cloud computing technology,as well as major breakthroughs in e-commerce.Internet financial companies are increasingly appearing in the public eye.With the help of internet,the financial field has gradually formed a system combining Internet and finance.Since2010,Internet financial products,represented by Alipay,represented by the third party payment,P2 P network loan,public financing,and the balance treasure launched by ant gold service have sprung up like mushrooms.The growth of the Internet has promoted tremendous changes in the service forms of financial services,while improving the efficiency of business management.Various modes of Internet finance have the characteristics of high efficiency and low cost.As the representative of traditional financial industry,commercial banks have been seriously affected.Therefore,it is of great significance for commercial banks to study how Internet finance affects the profitability of commercial banks in China and how to deal with the impact of Internet finance.Under the above reasons,this paper aims to study the impact of Internet Finance on the profitability of commercial banks in China.Firstly,the text reviews and collates the relevant literature on commercial banks and Internet finance at home and abroad up to now;secondly,it expounds the relevant theoretical overview,mainly including the definition of Internet finance,main modes,theoretical basis,as well as the definition and judgment indicators of commercial banks' profitability;in addition,it expounds Internet Finance and domestic commercial banks.The development of banks and the impact of Internet Finance on commercial banks' profitability are analyzed qualitatively.The impact of third-party payment,P2 P Internet lending,crowdsourcing and Internet financing on the profitability of commercial banks in China is analyzed,and the research hypothesis is put forward.Secondly,this paper takes 16 listed commercial banks as the research object,and uses the annual data of 2013-2017 as the panel data to construct the model,and carries on the empirical analysis.The explanatory variables are selected to represent the profitability of commercial banks by selecting the total return on assets of commercial banks.The growth rate of transaction scale in the third-party payment market,thegrowth rate of transaction volume in the P2 P online lending market and the growth rate of crowdsourcing market are the explanatory variables to reflect the development of Internet finance.The cost-income ratio,asset size,capital adequacy ratio and non-performing loan ratio of commercial banks are taken as control variables.Empirical results show that: third-party payment,P2 P online lending,crowdsourcing financing platforms are negatively related to the profitability of commercial banks.Meaning that in recent years,the gradual growth of Internet finance has seriously impacted the profitability of commercial banks.Finally,in view of the impact of the growing scale of Internet Finance on the profitability of commercial banks,this paper puts forward some countermeasures for commercial banks.