Empirical Research On The Impact Of The Development Of The Third Party Payment Industry On The Profitability Of Chinese Commercial Banks

This paper sorts out the competitive relationship between the third-party payment industry and commercial banks,and believes that the continued expansion of the third-party payment industry's scale and business scope will have an impact on China's commercial banks.Due to the rapid development of the third-party payment industry in recent years,its impact on various aspects of commercial banks is changing with each passing day.Therefore,this paper attempts to analyze the impact mechanism of the third-party payment industry on the traditional business and core competitiveness of the commercial bank to further clarify the impact on the commercial bank,and form a theoretical basis through analysis to help the third-party payment industry and the commercial bank find the future development direction.The research in this paper not only collected complete quarterly data and expanded the range of annual data mainly used in previous studies,but also analyzed the changes in the third-party payment industry due to policy implementation.It provides suggestions and countermeasures with reference value for commercial banks to respond to the impact and to seek future development directions,which are meaningful for having certain theoretical and practical significance.In the theoretical analysis part,by analyzing the impact of the third-party payment industry on the deposit and loan business,intermediate business,customer resources,and bank security and stability of commercial banks,it is concluded that the development of the third-party payment industry will weaken the overall profitability of commercial banks.Then conduct an empirical analysis,organize the quarterly financial data of 16 listed banks from 2013 to 2018 to construct panel data,and select the total return on assets of the commercial bank,the proportion of non-interest income and the net interest margin to represent the overall profitability,the profitability of the intermediate business,and the profitability of the deposit and loan business,respectively.Then using data on the size of third-party payment transactions to regress them separately.The empirical results show that the development level of the third-party payment industry has a weakening effect on the overall profitability of commercial banks,which is consistent with the theoretical analysis conclusions,but has a positive role in promoting intermediate business income as one of the sources of profit.The competition and cooperation relationship with commercial banks has increased the business volume and innovation momentum of commercial banks 'intermediate business,and enhanced the profitability of intermediate business.From this aspect,it is explained that the impact of third-party payments on commercial banks' profitability is mainly concentrated on the deposit and loan business.The impact of the loss of deposits,the rise in deposit costs,and the squeeze on the market share of the retail loan business have had a significant negative impact on commercial banks that take deposit-lending spreads as the main source of profit,which has weakened the overall profitability of commercial banks.