Research On The Influence Of Internet Finance Development On Risk Taking Of Commercial Banks In China

In recent years,with the rapid development of Internet technology and e-commerce,Internet finance has also experienced brutal growth.The spirit of “openness,equality,collaboration and sharing” of the Internet makes Internet finance have the advantages of low cost,high efficiency and overcoming information asymmetry compared with traditional finance,filling the blind spot of traditional financial services,and at the same time it is fierce with traditional finance.competition.The development of various Internet financial formats such as third-party payment,P2 P online lending,Internet money funds,etc.,diverted bank deposits,weakened the pricing power of bank loans,and invaded the market share of commercial banks' intermediate business.At the same time,the Internet The technological demonstration effect brought by finance has improved the bank's risk control level and operational efficiency.Faced with the impact of Internet finance,how will the risk level of Banks change? Will the development of Internet finance have heterogeneous effects on different types of commercial Banks? Do different forms of Internet finance also have heterogeneous effects on commercial Banks' risk-taking? This paper analyzes the above problems by combining theoretical and empirical methods.Firstly,this paper reviews relevant literatures of domestic and foreign scholars on the impact of Internet finance on commercial Banks' risk-taking,and analyzes the impact mechanism of Internet finance on commercial Banks' risk-taking based on financial intermediary theory,long tail theory and financial function theory.In the empirical part,this article will the entropy method of analytic hierarchy process(ahp)and objectively to build Internet financial development index,and by using the panel data of 98 commercial Banks,building dynamic panel model,first studied the Internet financial impact on commercial bank risk bearing the whole samples,the Internet is studied the financial impact on the heterogeneity of different types of commercial bank risk,finally further study the different impact on commercial bank risk exposures of Internet financial forms.The main conclusions are as follows:(1)The impact of the development of Internet finance on the risk-taking of commercial banks is “U”-type trend.In the early stage,the technical demonstration effect of Internet finance has improved the bank's risk control level and operational efficiency,making up for the adverse effects of competition,but with the growing Internet finance,the level of risk control and operational efficiency has been limited,and the adverse effects of competition have become increasingly prominent.(2)The development of Internet finance has a heterogeneous impact on different types of commercial banks.City commercial banks are most sensitive to the impact of Internet finance,and state-owned banks are least sensitive to the impact of Internet finance.(3)Different Internet financial formats have heterogeneous impact on commercial banks' risk exposure.The impact of Internet payment,Internet funds and Internet information processing technology on commercial banks' risk exposure is “U”-type trend,while the impact of Internet credit and Internet insurance on commercial banks' risk exposure is in a reverse “U” trend.Finally,based on the results of theoretical and empirical analysis,this paper puts forward corresponding suggestions,hoping to help the risk management of commercial banks and promote the healthy development of China's financial industry.