An Empirical Study On The Impact Of Internet Finance Development On Commercial Banks’ Profits

In the context of Internet finance,the cost of financial transaction information is relatively low,which helps to solve the problem that commercial banks cannot timely transmit information.Due to the widespread promotion of Internet financial products,consumers have continuously improved their requirements for the service quality of banks.Compared with Internet companies,commercial banks lag behind in their development and face problems in terms of product form and concept.For the basic business of commercial banks,the rapid development of Internet finance has caused a considerable impact.This paper takes the impact of the development of Internet finance on the profitability of commercial banks as the analysis target.This paper focuses on the impact of the development of Internet finance on the profits of commercial banks,and analyzes the impact mechanism from two aspects:the development of Internet finance of Internet enterprises and the development of Internet finance of commercial banks.From the perspective of the development of Internet finance of Internet enterprises,from the perspective of the impact on debt business,the emergence of Internet finance has preempted demand deposits in banks to some extent.From the perspective of the impact on asset business,the development of Internet finance will lead to the diversion of part of the financing customer sources of banks,as well as the reduction of loan interest rates and the reduction of bank interest income.From the perspective of the impact on intermediary business,the emergence of Internet finance will crowd out the payment and settlement market of commercial banks,significantly reduce the fee income,and on the basis of the diversion of customer resources with financial needs,it will also have a lot of impact on the commission income of banks.From the perspective of the development of the Internet finance of commercial banks,the development of the Internet finance of commercial banks promotes the liability business,asset business and intermediate business to a certain extent.Through research,this paper finally finds that,on the whole,Internet finance and commercial banks’ profits present an inverted "U" type nonlinear relationship.The effect of Internet finance on the profits of all kinds of commercial banks is heterogeneous,and It has obvious spillover effect on small and medium-sized commercial banks,but not on large commercial banks.In terms of the impact on the profits of commercial banks,the development of Internet finance of Internet enterprises has a negative impact on them,while the development of Internet finance of commercial banks has a positive impact on them.