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Trent University in 2015. His research work has focused on financial stability, both in the UK and in the China. His research uses econometrics analysis of time series data and panel data.

Abstract. As a new type of financial industry, the regulatory policy of internet finance is a fundamental to its development, which involve in not only the steady development of financial market, but also the maintenance of the legitimate rights of internet financial consumers. The paper first defined the definition of internet finance, and then classified the models of internet financial industry. Based on the analysis of the prudential supervision, functional regulation and conduct regulation of the traditional financial industry, this paper discussed the measures of internet financial consumer protection. Finally, the paper designed the regulatory framework of internet finance in China.

In this paper, we study how the interbank market could impact deposit competition and bank profits. We first document two stylized facts: the net interbank funding ratio is negatively correlated with net interest margin (NIM), as well as with the cost-to-income ratio (CIR). To rationalize these two facts, we embed the interbank market into a BLP model framework. The model is calibrated using Chinese listed banks’ data. A counterfactual experiment reveals that shutting down the interbank market will lead to a decline in NIM and bank profits. Our results indicate that the interbank market can facilitate specialization and reduce the intensity of deposit competition.

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