The impact of China’s Internet Finance on the banking systemic risk – an empirical study based on the SCCA model and stepwise regression

Abstract

ABSTRACTThe disorderly development of Internet Finance impacts both the banking industry and the macroeconomy and opens a risk contagion channel, which easily generates the banking systemic risk. Based on current banking systemic risk measured by Systemic Contingent Claims Analysis (SCCA) model and a stepwise regression, we verify the impacts of China’s Internet Finance on the banking industry and predict that the risk will rise in the future.