The Influence Of Internet Finance On The Performance Of Commercial Banks

In recent years,with the rapid development of third-party payment,P2 P and other Internet financial services,great changes have taken place in the market environment of the financial market,which has had a profound impact on the profitability of commercial Banks.In this context,this paper attempts to explore the impact of Internet finance on bank performance.On the basis of reading a large number of relevant literatures,this paper comes to the conclusion that Internet finance influences bank performance through the following two aspects.First,the development of Internet finance directly reduces the liability business,asset business and intermediate business of commercial Banks,and reduces the performance of Banks.Second,the development of Internet finance has changed the market share of commercial Banks and indirectly affected the performance level of Banks.In view of this,this paper takes the market share of Banks as an intermediary factor and uses the intermediary effect model to estimate the degree and mechanism of the impact of Internet finance on bank performance.In terms of data collection,this paper collected panel data of 98 commercial Banks from 2010 to 2016.After collecting relevant data,this paper first evaluates the comprehensive performance score of commercial Banks and the development degree of Internet finance by using factor analysis method.Then take the reasonable measure of Internet finance as the core explanatory variable.The end of the paper using a fixed effect model to estimate the influence of the Internet in the commercial bank financial performance,the influence of the Internet commercial bank's financial market and the Internet financial performance and market structure of commercial Banks,and use the panel calibration standard error correction model(PCSE)different variance to get the correct statistical inference results.The research conclusions of this paper are divided into the following five points.First,Internet finance has a significant negative impact on the performance of commercial Banks.Second,Internet finance has a significant negative impact on the market share of commercial Banks.Third,market share and performance of commercial Banks have a significant positive impact,and the relationship between market share and performance of commercial Banks is applicable to the hypothesis of relative market forces.Fourth,market share has a significant partial mediating effect on the relationship between Internet finance and commercial bank performance.Fifth,the impact of Internet finance on the performance of state-owned commercial Banks is not significant,but on the performance of jointstock system,urban commercial Banks and rural commercial Banks is significant.According to the research conclusion,this paper puts forward corresponding policy Suggestions from the two aspects of commercial Banks themselves and bank regulators.First,in the context of the rapid development of Internet finance,China's commercial Banks should actively use the advantages of the Internet,combine with the specific situation,keep up with the market trend,and innovate the financial service mode on the basis of getting close to users' needs and understanding their habits.Second,China banking regulatory commission,as the regulator of banking business,should pay attention to the channels and ways of Banks' new business expansion to ensure the healthy and orderly development of China's commercial Banks from the root.The main contributions of this paper are as follows.First,this paper not only analyzes the direct impact of Internet finance on bank performance,but also analyzes the indirect impact of market share on bank performance.It is a rare study on the mechanism of Internet finance on the performance of commercial Banks in China.Second,compared with the majority of scholars who only choose one of the modes as the measurement of the whole Internet finance,this paper will consider all modes of Internet finance in a more comprehensive way,use factor analysis to obtain the comprehensive index of Internet finance,and study the impact of the whole Internet finance on commercial Banks.