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Research on the Influence of Internet Finance on Commercial Banks’ Risk-taking
Pages: 71-85+115
Year: Issue:  4
Journal: Finance & Trade Economics

Keyword:  Internet FinanceRisk ManagementOperating ConditionsRisk ContagionCommercial Banks’ Risk-taking;
Abstract: This paper analyzes the mechanism of Internet finance’s impact on commercial banks’ risktaking from four dimensions:risk management,operation efficiency,profitability and risk contagion.Using the data of 143 Chinese commercial banks from 2003 to 2014,this paper tests the impact of Internet finance development on commercial banks’ risk-taking.The results show that the rapid development of Internet finance improves the commercial banks’ risk management and operating efficiency,compensates for its adverse impact on profit and risk while reducing the risk of bankruptcy of commercial banks and promoting the stability of the entire financial system.The effects of Internet finance on different types of commercial banks are different.The risk-taking of joint-stock commercial banks gets reduced while the risk-taking of large commercial banks,city commercial banks and rural commercial banks is increased.The bankruptcy risk of city commercial banks gets increased mostly.Therefore,commercial banks need to promote the entire financial system stability by making use of Internet finance in a reasonable way based on the natures of commercial banks.
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