Author(s)

Yao Zongyu ¹, Liu Honghao ¹

Affiliation(s)

¹ School of Economics and Management, Guangdong Technology College, Zhaoqing, China

Corresponding Author

Yao Zongyu

ABSTRACT

Under effective supervision and industry self-regulation, the new financial model of Internet finance has entered a stage of stable development. As a representative of new finance, in the first half of 2023, the market scale of China's online lending industry reached 10.85 trillion yuan. At the same time, the impact of new finance on the financial field has always been the concern of the academic community. This paper uses monthly data in recent years to establish a VECM model and empirically analyzes the degree of impact of Internet finance represented by online lending platforms on traditional finance. The results prove that online lending has a significant impact on monetary policy, the impact on bank credit (loans) changes from negative to positive, has a significant negative impact on the bank's benchmark interest rate, and the long-term cointegration binding force is strong. Thus, it provides a certain empirical basis for traditional financial institutions to implement effective financial policies.

KEYWORDS

Online lending, Credit receipts and disbursements, Monetary policy, Benchmark interest rate, Cointegration test, VECM model, Impulse response function

CITE THIS PAPER

Yao Zongyu, Liu Honghao, Analysis of the Impact of New Finance on Credit Revenue and Expenditure, Monetary Policy and Benchmark Interest Rate. Financial Engineering and Risk Management (2024) Vol. 7: 17-26. DOI: http://dx.doi.org/10.23977/ferm.2024.070603.

REFERENCES

[1] Zhou Li. Research on the Current Situation of China's Internet Finance Development and Its Impact on Monetary Policy Transmission Channels [J]. International Business Accounting, 2022(02)
[2] Li Wei, Wang Yaxing. An Empirical Study on the Impact of Internet Finance on Monetary Policy - From the Perspective of P2P Online Lending [J]. Journal of Commercial Economics, 2016(7):157-159.
[3] Peng Fangchun, Xu Hao, Shen Yuxi. Research on the Impact of Internet Finance on the Loan Scale of Bank Financial Institutions - Taking China's P2P Online Lending as an Example [J]. Monetary Theory, 2018(11):11-17.
[4] Tang Junyu. Research on the Impact of P2P Model on Traditional Financial Industry and Its Impact on Monetary Policy Transmission [J], Financial Technology Times, 2015(11):99-103.
[5] Zhou Geng, Fan Conglai. Research on the Impact of Monetary Policy on the Market Interest Rate of P2P Online Lending [J], Journal of Central University of Finance and Economics, Issue 6, 2016. 29-38.
[6] Wang Juan, Wang Cao. On the Impact of P2P Online Lending on Money Supply [J]. Journal of Commercial Economics, 2018(6):162-165.
[7] Zou Xinyue, Luo Yanan, Gao Yang. Analysis of the Impact of Internet Finance on China's Monetary Policy [J]. Journal of Hunan University of Science and Technology (Social Science Edition), 2014(4)
[8] Liu Lin. The Current Situation and Prospect of China's P2P Online Lending [J]. Financial Vision, 2019(6):15-16.
[9] Zhang Chuansheng, Liu Yun. Research on the Development Model and Regulatory Issues of Internet Finance [J]. Research of Financial Education, 2015, 28(2):26-30.
[10] Zhang Lianbiao, Yang Xiaoyuan. Research on the Impact of Internet Finance on China's Commercial Banks and Countermeasures [J]. Zhejiang Finance, 2013(10):31-33. 
[11] Liao Li, Li Mengran, Wang Zhengwei, Smart Investors: Non-fully Marketized Interest Rates and Risk Identification - Evidence from P2P Online Lending [J]. Economic Research Journal, 2014(7):125-137.
[12] Ge Qingping. Analysis of the Impact of Internet Finance on Traditional Financial Industries and Development Strategies [J]. Industrial Innovation Research, 2023(15): 148-150.

Sponsors, Associates, and Links

---

• Information Systems and Economics
  
  
• Accounting, Auditing and Finance
  
  
• Industrial Engineering and Innovation Management
  
  
• Tourism Management and Technology Economy
  
  
• Journal of Computational and Financial Econometrics
  
  
• Accounting and Corporate Management
  
  
• Social Security and Administration Management
  
  
• Population, Resources & Environmental Economics
  
  
• Statistics & Quantitative Economics
  
  
• Agricultural & Forestry Economics and Management
  
  
• Social Medicine and Health Management
  
  
• Land Resource Management
  
  
• Information, Library and Archival Science
  
  
• Journal of Human Resource Development
  
  
• Manufacturing and Service Operations Management
  
  
• Operational Research and Cybernetics