Empirical Study On The Impact Of Interest Rate Liberalization And Bank Internetization On The Robustness Of Commercial Banks

With the continuous deepening of the reform of the economic and financial system and the continuous development of the social economy,China's financial liberalization process is constantly advancing.On the one hand,with the liberalization of the deposit interest rate ceiling,China's interest rate liberalization reform has basically been completed,and the traditional profit model dominated by commercial banks with spread income has been seriously affected;on the other hand,the rapid development of Internet finance,third parties Emerging Internet financial formats such as payment,P2 P online lending,and crowdfunding continue to emerge.Its cross-industry competition and the gradual penetration of traditional banking services have further squeezed the bank's living space.Banks have to consider transformation and development and seek the way of diversified operations.In recent years,in order to adapt to the impact of the new Internet finance format and the challenges brought by the interest rate liberalization reform,China's commercial banks have begun to actively deploy Internet finance services,transform to the Internet,and enter the Internet financial market to participate in competition.At the same time of development,the bank's robustness has also been greatly challenged.The increase of external uncertainty and internal vulnerability has intensified the operational pressure of commercial banks.A sound banking system is the basis for stable financial development and support for sustained and steady economic growth.Therefore,considering the impact of interest rate liberalization and bank internetization on bank stability is a problem that banks cannot avoid in the face of fierce competition and strategic choices.At present,domestic and international research on the relationship between interest rate liberalization,bank Internetization and the stability of commercial banks has different conclusions and different opinions.This has brought doubts to the development path of banks to implement Internetization strategies and deal with the impact of interest rate liberalization.Therefore,based on the relevant research theories,this paper empirically analyzes the impact of interest rate liberalization and bank Internet on bank robustness,and further explores the interaction between the two.It is expected to verify the different conclusions existing at home and abroad,and provide some reference for the in-depth study of the bank's robustness.Based on financial deepening theory,financial innovation theory,diversified management theory and financial fragility theory,this paper analyzes the impact of interest rate liberalization on bank stability from three aspects: profitability,liquidity and risk-taking.On the one hand,it analyzes the impact path of the bank's own Internet on its robustness from three aspects: cost,revenue and risk.It theoretically suggests that there may be interaction between the two,which will affect the bank's robustness.Then,by selecting the 10 listed commercial banks represented by online banking as the representative of the listed Internet,the panel data of the first quarter of 2011 to the third quarter of 2018 was selected,and the fixed-effect model was selected for the full sample and the classified sample.The regression estimate.In terms of indicators,based on the international assessment system and China's actual situation,seven sub-indicators were selected from four aspects,and the composite index was used to measure the bank's robustness level;from the perspective of narrowing the deposit-loan spread,the net spread was used to reflect the bank.Level of interest rate liberalization;affected by data,the bank Internetization index is replaced by the development level of online banking.In addition,the corresponding control variables are selected from the micro level of the bank and the macro level of the economy to carry out the empirical regression together.In order to ensure the validity of the results,the substitution index variables were used to test the robustness of the model,which further verified the correlation between interest rate liberalization,bank internetization and bank robustness.After theoretical and empirical research,the paper draws the following conclusions: First,with the advancement of interest rate liberalization,the net interest margin of deposits and loans will further narrow,and the stability of commercial banks will be reduced.Second,the commercialization of commercial banks will improve their operations.At the same time,efficiency will also aggravate business risks,thus reducing the bank's stability.Third,the impact of interest rate liberalization and bank Internetization on bank robustness has an interactive effect.The specific performance is that on the one hand,the marginal impact of interest rate liberalization on bank stability will decline as the degree of bank Internetization increases.The Internetization of banking business will improve operational efficiency,broaden profit channels,enrich revenue sources,and ease interest rate.On the other hand,the marginal impact of bank Internetization on stability will increase with the advancement of interest rate liberalization.The interest rate liberalization will intensify industry competition and prompt commercial banks to accelerate the transformation of business model.Therefore,the risk in the whole process is further accumulated,which is not conducive to the overall stability of the bank.Based on the above theories,this paper proposes that commercial banks should seize the opportunity of interest rate liberalization reform,increase innovation,coordinate the implementation of bank Internet transformation strategy,scientifically match innovative products and service models,optimize industrial structure,and make good use of Internet technology.To improve the identification and control of their own risks,reduce the adverse effects of interest rate liberalization and bank Internetization on bank soundness,enhance its benign effect,and comprehensively improve its own robustness.This paper analyzes the impact of bank's robustness from the external impact of interest rate liberalization reform on commercial banks and the commercialization of commercial banks' own business,and comprehensively examines the possible interaction effects between the two,which has certain innovation.Although the conclusions of this paper have certain limitations,this paper combines relevant theories to make a more objective explanation of the relationship between interest rate liberalization,bank Internetization and bank robustness,which has certain reference significance for such research.