The influence of Yu’E Bao on Chinese bank deposit business

Abstract

Yu’E Bao has grown rapidly since its launch in 2013. Its high returns and good liquidity have attracted a large number of users, prompting other fund companies to launch similar products. The capital and income of Yu’E Bao are mainly from banks, so what impact Yu’E Bao will have on banks has been a hot topic in the financial circle. Firstly, the paper analyzes the characteristics of Yu’ E Bao. Second, the linear regression method will be used to quantitatively study the impact of Yu’E Bao on the deposit business of banks. After the research, it is found that Yu’E Bao has a negative impact on the deposit business of Chinese banks. Finally, this paper analyzes the impact of Internet finance on banks and proposes countermeasures for banks.