Abstract
This paper chooses 14 listed banks in China June 2013 to March 2016 quarter data as sample, exploding the effect of “Bao bao” Internet monetary funds on deposits in commercial banks based on the econometric model. The empirical results show that “Bao bao” Internet monetary funds have not been diverted the deposits balance of commercial banks, but it increases the cost of deposits of commercial banks, and brings a certain amount of pressure on interest payments of Chinese commercial banks.
Highlights
In a narrow sense, The Internet Currency Fund is a kind of emerging Internet financial management mode, which draws support from platforms developed by the third party
1) Setting of the explained variables Informed by the analysis above, the impact from “Bao bao” Internet monetary funds mainly reflects in the distribution of saving business
The fact that Index of Consumer Expectations has a positive effect on the growth rate of quarterly average deposit of commercial banks is contrary to Modigliani’s Life Circle Hypothesis of Consumption
Summary
The Internet Currency Fund is a kind of emerging Internet financial management mode, which draws support from platforms developed by the third party. It is called The “Bao bao” Internet Monetary Fund by Chinese scholars due to the name of these Internet Monetary Fund with Bao word. It scaled up to 574.16 billion yuan, as well as reaching 100 million clients It became the hottest single fund around the world, as its users and accumulated benefit have achieved 295 million and 57.293 billion respectively by the end of June 2016. Do “Bao bao” Internet currency funds truly bring an obvious impact on saving business of commercial banks? Do “Bao bao” Internet currency funds truly bring an obvious impact on saving business of commercial banks? Based on the background above, this paper will mainly take the empirical approach to examine the level of influence that “Bao bao” brings to the banks
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