Analysis of the Impact of Interest Rate Liberalization on Internet Finance

Guaili Zhang; Jiahao Cheng

doi:doi:10.11648/j.ss.20180706.12

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Analysis of the Impact of Interest Rate Liberalization on Internet Finance

Guaili Zhang, Jiahao Cheng

Published in Social Sciences (Volume 7, Issue 6)

Received: 1 July 2018 Accepted: 14 September 2018 Published: 26 October 2018

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Abstract

With the wide application of Internet information technology, every industry has been organically combined with the Internet and has gained new development, which is an inevitable trend of social development. Internet financial products are the new products of the combination of Internet and financial industry. At the same time of the birth of Internet finance, China is carrying out financial market reform. In this context, we want to know how its development will be affected. The purpose of this paper is to study the influence of interest rate liberalization on the development of Internet finance. This paper first analyzes the relationship between the internet finance and the interest rate marketization, then analysis the influence of interest rate marketization on internet financial; Finally, an empirical model analysis demonstrates the influence of interest rate marketization on internet financial, the empirical test shows that although a certain time lag, but the money market and bond market is the granger cause of the internet financial. The interest rate marketization will impact the internet financial operations, commercial bank as the conduction intermediary, can make the market interest rates move in same direction with the internet financial interest rates. Therefore, financial enterprises have to adapt to the interest rate marketization and grasp the actively response to the new environment of interest rate liberalization in order to make themselves get better and faster development.

Published in	Social Sciences (Volume 7, Issue 6)
DOI	10.11648/j.ss.20180706.12
Page(s)	248-259
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Interest Rate Marketization, The Internet Financial, Impact

References

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[2]	Miu Hai bin. Interest rate liberalization and Internet Finance: contagion effect and linkage effect [J]. Financial regulation research, 2014, (9):53-67.
[3]	Han Peng, you Yang. Similarities and differences and development trend of financial Internet and Internet Finance [J]. economic research reference, 2015, (2704):31-37
[4]	Feng Wen Tao. Research on the operation mechanism of Internet Finance under the marketization of interest rate: Taking "balance treasure" as an example [J]. Journal of Shanghai Finance University, 2015, (131):64-76.
[5]	Long Yong Li Liyu. Niu run Sheng. Analysis and empirical research on the relationship between Internet Finance and interest rate marketization [J]. Beijing financial review, 2015. (4): 36-49.
[6]	Yang Shaofen Wu Yongchao. Influence of Internet Financial Development on interest rate marketization [J]. Financial development review, 2015. (8):95-101.
[7]	Tang Ling Ling. Peng pin Luo Changqing. Empirical research on the impact of Internet Finance on interest rates [J]. Quest 2016 (8): 109-114.
[8]	He Dong, Wang Hong Lin. Dual interest rate system and China's monetary policy implementation [J]. financial research, 2011 (12): 1-18.
[9]	Sun Yi Ming. Internet finance from the perspective of interest rate liberalization -- inspiration from the development of American monetary fund [J]. Shanghai finance, 2014(6):110-112.
[10]	Qi Zhi He. Ming Sheng Peng. A study of interest rate characteristics of online loans based on Internet finance.[J]. Financial research, 2016(10):95-110.
[11]	People's bank of China financial stability analysis group. China financial stability report 2014[R] China financial press, 2014.
[12]	Yi gang. The process of interest rate liberalization in China's 30 years of reform and opening-up [J]. Financial studies, 2009 (1):1-14.
[13]	Zheng lian sheng, China Internet finance: model, influence, essence and risk [J]. International economic review, 2014(5): 103-118.
[14]	Zhou zhan hong, the significance of interest rate liberalization for China's financial reform -- discussion on the feasibility of starting direct financing market by taking the opportunity of Internet finance [J]People Tribune, 2014 (12): 33-37.
[15]	Gao shan wen, interest rate liberalization and the rise of yu 'ebao [J] Banker's Forum, 2014(4): 7-13.

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APA Style

Guaili Zhang, Jiahao Cheng. (2018). Analysis of the Impact of Interest Rate Liberalization on Internet Finance. Social Sciences, 7(6), 248-259. https://doi.org/10.11648/j.ss.20180706.12

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ACS Style

Guaili Zhang; Jiahao Cheng. Analysis of the Impact of Interest Rate Liberalization on Internet Finance. Soc. Sci. 2018, 7(6), 248-259. doi: 10.11648/j.ss.20180706.12

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AMA Style

Guaili Zhang, Jiahao Cheng. Analysis of the Impact of Interest Rate Liberalization on Internet Finance. Soc Sci. 2018;7(6):248-259. doi: 10.11648/j.ss.20180706.12

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@article{10.11648/j.ss.20180706.12,
  author = {Guaili Zhang and Jiahao Cheng},
  title = {Analysis of the Impact of Interest Rate Liberalization on Internet Finance},
  journal = {Social Sciences},
  volume = {7},
  number = {6},
  pages = {248-259},
  doi = {10.11648/j.ss.20180706.12},
  url = {https://doi.org/10.11648/j.ss.20180706.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ss.20180706.12},
  abstract = {With the wide application of Internet information technology, every industry has been organically combined with the Internet and has gained new development, which is an inevitable trend of social development. Internet financial products are the new products of the combination of Internet and financial industry. At the same time of the birth of Internet finance, China is carrying out financial market reform. In this context, we want to know how its development will be affected. The purpose of this paper is to study the influence of interest rate liberalization on the development of Internet finance. This paper first analyzes the relationship between the internet finance and the interest rate marketization, then analysis the influence of interest rate marketization on internet financial; Finally, an empirical model analysis demonstrates the influence of interest rate marketization on internet financial, the empirical test shows that although a certain time lag, but the money market and bond market is the granger cause of the internet financial. The interest rate marketization will impact the internet financial operations, commercial bank as the conduction intermediary, can make the market interest rates move in same direction with the internet financial interest rates. Therefore, financial enterprises have to adapt to the interest rate marketization and grasp the actively response to the new environment of interest rate liberalization in order to make themselves get better and faster development.},
 year = {2018}
}

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TY  - JOUR
T1  - Analysis of the Impact of Interest Rate Liberalization on Internet Finance
AU  - Guaili Zhang
AU  - Jiahao Cheng
Y1  - 2018/10/26
PY  - 2018
N1  - https://doi.org/10.11648/j.ss.20180706.12
DO  - 10.11648/j.ss.20180706.12
T2  - Social Sciences
JF  - Social Sciences
JO  - Social Sciences
SP  - 248
EP  - 259
PB  - Science Publishing Group
SN  - 2326-988X
UR  - https://doi.org/10.11648/j.ss.20180706.12
AB  - With the wide application of Internet information technology, every industry has been organically combined with the Internet and has gained new development, which is an inevitable trend of social development. Internet financial products are the new products of the combination of Internet and financial industry. At the same time of the birth of Internet finance, China is carrying out financial market reform. In this context, we want to know how its development will be affected. The purpose of this paper is to study the influence of interest rate liberalization on the development of Internet finance. This paper first analyzes the relationship between the internet finance and the interest rate marketization, then analysis the influence of interest rate marketization on internet financial; Finally, an empirical model analysis demonstrates the influence of interest rate marketization on internet financial, the empirical test shows that although a certain time lag, but the money market and bond market is the granger cause of the internet financial. The interest rate marketization will impact the internet financial operations, commercial bank as the conduction intermediary, can make the market interest rates move in same direction with the internet financial interest rates. Therefore, financial enterprises have to adapt to the interest rate marketization and grasp the actively response to the new environment of interest rate liberalization in order to make themselves get better and faster development.
VL  - 7
IS  - 6
ER  -

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Author Information

Guaili Zhang

Department of Finance and Economics, Guangdong AIB Polytechnic College, Guangzhou, China
Jiahao Cheng

Department of Finance and Economics, Guangdong AIB Polytechnic College, Guangzhou, China

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Plain Text BibTeX RIS

APA Style

Guaili Zhang, Jiahao Cheng. (2018). Analysis of the Impact of Interest Rate Liberalization on Internet Finance. Social Sciences, 7(6), 248-259. https://doi.org/10.11648/j.ss.20180706.12

Copy | Download

ACS Style

Guaili Zhang; Jiahao Cheng. Analysis of the Impact of Interest Rate Liberalization on Internet Finance. Soc. Sci. 2018, 7(6), 248-259. doi: 10.11648/j.ss.20180706.12

Copy | Download

AMA Style

Guaili Zhang, Jiahao Cheng. Analysis of the Impact of Interest Rate Liberalization on Internet Finance. Soc Sci. 2018;7(6):248-259. doi: 10.11648/j.ss.20180706.12

Copy | Download

@article{10.11648/j.ss.20180706.12,
  author = {Guaili Zhang and Jiahao Cheng},
  title = {Analysis of the Impact of Interest Rate Liberalization on Internet Finance},
  journal = {Social Sciences},
  volume = {7},
  number = {6},
  pages = {248-259},
  doi = {10.11648/j.ss.20180706.12},
  url = {https://doi.org/10.11648/j.ss.20180706.12},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ss.20180706.12},
  abstract = {With the wide application of Internet information technology, every industry has been organically combined with the Internet and has gained new development, which is an inevitable trend of social development. Internet financial products are the new products of the combination of Internet and financial industry. At the same time of the birth of Internet finance, China is carrying out financial market reform. In this context, we want to know how its development will be affected. The purpose of this paper is to study the influence of interest rate liberalization on the development of Internet finance. This paper first analyzes the relationship between the internet finance and the interest rate marketization, then analysis the influence of interest rate marketization on internet financial; Finally, an empirical model analysis demonstrates the influence of interest rate marketization on internet financial, the empirical test shows that although a certain time lag, but the money market and bond market is the granger cause of the internet financial. The interest rate marketization will impact the internet financial operations, commercial bank as the conduction intermediary, can make the market interest rates move in same direction with the internet financial interest rates. Therefore, financial enterprises have to adapt to the interest rate marketization and grasp the actively response to the new environment of interest rate liberalization in order to make themselves get better and faster development.},
 year = {2018}
}

Copy | Download

TY  - JOUR
T1  - Analysis of the Impact of Interest Rate Liberalization on Internet Finance
AU  - Guaili Zhang
AU  - Jiahao Cheng
Y1  - 2018/10/26
PY  - 2018
N1  - https://doi.org/10.11648/j.ss.20180706.12
DO  - 10.11648/j.ss.20180706.12
T2  - Social Sciences
JF  - Social Sciences
JO  - Social Sciences
SP  - 248
EP  - 259
PB  - Science Publishing Group
SN  - 2326-988X
UR  - https://doi.org/10.11648/j.ss.20180706.12
AB  - With the wide application of Internet information technology, every industry has been organically combined with the Internet and has gained new development, which is an inevitable trend of social development. Internet financial products are the new products of the combination of Internet and financial industry. At the same time of the birth of Internet finance, China is carrying out financial market reform. In this context, we want to know how its development will be affected. The purpose of this paper is to study the influence of interest rate liberalization on the development of Internet finance. This paper first analyzes the relationship between the internet finance and the interest rate marketization, then analysis the influence of interest rate marketization on internet financial; Finally, an empirical model analysis demonstrates the influence of interest rate marketization on internet financial, the empirical test shows that although a certain time lag, but the money market and bond market is the granger cause of the internet financial. The interest rate marketization will impact the internet financial operations, commercial bank as the conduction intermediary, can make the market interest rates move in same direction with the internet financial interest rates. Therefore, financial enterprises have to adapt to the interest rate marketization and grasp the actively response to the new environment of interest rate liberalization in order to make themselves get better and faster development.
VL  - 7
IS  - 6
ER  -

Copy | Download