GUO Pin, SHEN Yue:The Impact of Internet Finance on Commercial Banks Risk-taking: Theoretical Interpretation and Empirical Test

Abstract：Through introducing internet finances “reducing management cost” and “raising capital cost” effects into bank risk-taking model, this paper systematically investigates the dynamic and heterogeneous influence of internet finance on commercial banks risk-taking.Using internet finance index and data of 36 commercial banks from 2003 to 2013, we conduct an empirical test based on “text mining”.Firstly, the impact of internet finance on commercial banks risk-taking is a U-shaped trend.The initial development of internet finance can help commercial banks to reduce management cost and risk-taking, but then internet finance will raise capital cost, and turn to exacerbate banks risk-taking.Secondly, the response of commercial banks risk-taking is heterogeneous.Large commercial banks response is slow, while small and medium banks response is relatively sensitive.

Key words： Internet Finance    Commercial Banks Risk-taking    System GMM Estimation

source:Finance & Trade Economics ,No.10,2015