The influence of Internet finance to loan business of Chinese commercial banks

Abstract

Internet finance is widely applied in daily life, which will strongly affect the main businesses of commercial banks. The research suggested that the development of internet finance will improve the non-interest income business of commercial banks. To better understand the influence that Internet finance leads to the loan business of the commercial banks, the research chose data from 2005-2018 from 17 commercial banks, including 5 large commercial banks and 12 joint-stock commercial banks, according to Bloomberg and their annual reports. By taking capital adequacy ratio, operating efficiency, liquidity, non-performing loan, and net asset into consideration, it analyzed the non-interest income proportion of operating income. In addition, the research discussed if commercial banks can make more profits with the decreasing proportion of loan business, and help commercial banks to find a better way to exist and earning money.