THE IMPACT OF INTERNET FINANCEONTHEPROFITABILITY OF CHINA COMMERCIALBANKS

Abstract

In recent years, Internet finance in China has developed rapidly and become the focusof attention. The financial industry of China is breaking the tradition and carryingonthe new reform in the aspect of profit mode. This is not only a huge development opportunity for the domestic financial industry, but also a huge challenge andrisk. Based on the analysis of the development mode and current situation of Internet finance, this paper further analyzes the influence of Internet finance on commercial banks' profitability. First of all, starting with the current situation of the development of Internet finance in China, this paper makes a comprehensive and systematic discussionon the impact of Internet finance on the profitability of commercial banks, and takes 16A-share listed commercial banks as a sample, then this research uses multipleregression test, F-test and T-test in order to examine the hypothesis testing. The resultsconfirm that bank scale (Ta), P2P Loan scale (P) and The third-payment (T) havepositive significant influence towards Return on assets (ROA). All independent variables are found to be simultaneously significant toward Return on Asset（ROA). Finally, all independent variables contributed is 57.0% to the dependent variable. Based on the result, and at the end of the thesis, under the trend of Internet financedevelopment, put forward reasonable strategies and suggestions on the futuredevelopment of China commercial banks