Research Article
The Impact and Role of Internet Finance on Non-Performing Loans: An Empirical Analysis of 18 Major Commercial Banks
@INPROCEEDINGS{10.4108/eai.1-9-2023.2338773, author={Haifeng Pang and Changxu Wu}, title={The Impact and Role of Internet Finance on Non-Performing Loans: An Empirical Analysis of 18 Major Commercial Banks}, proceedings={Proceedings of the 2nd International Conference on Public Management, Digital Economy and Internet Technology, ICPDI 2023, September 1--3, 2023, Chongqing, China}, publisher={EAI}, proceedings_a={ICPDI}, year={2023}, month={11}, keywords={internet financial; non-performing loan ratio; commercial banks}, doi={10.4108/eai.1-9-2023.2338773} }- Haifeng Pang
Changxu Wu
Year: 2023
The Impact and Role of Internet Finance on Non-Performing Loans: An Empirical Analysis of 18 Major Commercial Banks
ICPDI
EAI
DOI: 10.4108/eai.1-9-2023.2338773
Abstract
In the 21st century, the high-speed development of internet finance has consistently maintained a rapid and iterative trend. Internet finance has gradually integrated itself into all aspects of residents' lives. Meanwhile, non-performing loans play a vital role in the reform and development of the banking industry. The role of internet finance for non-performing loans positions both of them significantly. Furthermore, this impacts positively the advancement of the banking industry. This paper elaborates on the relationship between internet finance and non-performing loans while highlighting their roles. Relevant data of 18 large commercial banks in China from 2017-2022 has been selected. A dynamic panel model has been used to analyze the empirical data and shows that there is a nonlinear relationship between internet finance and nonperforming loans. This relationship promotes short-term and inhibits long-term benefits. Further analysis shows that the impact of internet finance on NPLs varies between different types of banks. Accordingly, relevant measures and suggestions are put forward.