Analysis On The Impact Of Internet Finance On The Business Performance Of Commercial Banks

Internet finance began to erupt in China in 2012 and then entered a stage of rapid development.Domestic scholars have begun to study topics related to Internet finance.As China's current financial structure is still dominated by the inter-bank financial system,the emergence of Internet Finance overlap with the existing gold content system dominated by banks in terms of business scope and product innovation,which is bound to influence the current financial system structure in our country.Based on the previous studies,this paper discusses the impact of Internet Finance on the business performance of commercial banks.First of all,this paper reviews the current research status at home and abroad,and summarizes the previous research foundations from the perspective of the connotation of Internet finance,the impact on the performance of commercial banks and empirical research.On the basis of previous studies,four major theories: financial intermediary theory,financial repression theory,long tail theory and platform economy theory are used as the support of the theoretical part of this paper.As the concept of Internet finance is relatively broad,in order to better define the scope of this study,this paper defines it to a certain degree.And on this basis,the development process of Internet Finance in China is combed.Then this paper analyzes the four main modes of Internet Finance in detail: P2 P network lending,third-party payment,Internet financing,crowdfunding.After introducing the four models,this paper analyzes the impact of Internet Finance on the business performance of commercial banks,and also discusses the above four models separately.In order to make the article more scientific and persuasive,this paper adds empirical research on the basis of theoretical description.In this paper,we choose ROA to replace the performance of commercial banks,and on this basis,we do descriptive statistical analysis correlation analysis.Taking the Internet financial index(INF)as the explanatory variable and ROA as the explanatory variable,this paper constructs a series of control variables to test its stability and then uses GMM estimation method to make regression analysis.The conclusion in this paper mainly shows that Internet finance has different degrees of influence on different types of commercial banks,from decreasing gradually to national jointstock commercial banks,state-owned commercial banks,urban commercial banks,rural credit cooperatives.In addition,the impact of the current Internet financial operation mode on the business performance of commercial banks is also different.The third-party payment and Internet financing have a negative effect on it.P2 P online lending and crowdfunding financing have affected China's current financial system structure.Therefore,on the basis of the existing,this paper puts forward three policy suggestions: 1.Actively use Internet technology to integrate into their own business,and subdivide different types of banks;2.Strengthen cooperation with Internet companies and improve Operational performance;3.Actively construct Internet financial environment from the perspective of government.it is hoped that this paper can provide some help to improve the operating performance of China's commercial banks.Finally,due to the weakness of my writing,this paper summarizes the shortcomings of this paper and makes a prospect,hoping to provide ideas for later scholars to continue to study related fields.