The Impact of Internet Finance on the Profit Efficiency of Commercial Banks: Theory and Evidence From China

Wen Yang, Chien-Chi Chu, Jing Yang and Xinyu Ye

SAGE Open, 2023, vol. 13, issue 1, 21582440231158050

Abstract: According to the reality of China, we divide Internet finance into four parts as Internet payment services, Internet financing services, Internet financial management services, and online banking business of traditional commercial banks, to discuss the impact of Internet finance on the profit efficiency of commercial banks. Our theoretical analysis shows that the external impact of Internet finance will reduce the profit of commercial banks, but Internet financing and Internet financial management have less influence, and the financial Internet business can improve the profit efficiency of commercial banks to some extent. An empirical test of Chinese data provides support for these predictions, it suggests that the estimated impact is significant and robust. Furthermore, differences in ownerships and profit efficiency of commercial banks will be at work.

Keywords: profit efficiency; Internet finance; SFA model; panel threshold model (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/21582440231158050 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:sagope:v:13:y:2023:i:1:p:21582440231158050

DOI: 10.1177/21582440231158050

Access Statistics for this article

More articles in SAGE Open
Bibliographic data for series maintained by SAGE Publications ().