The spectrum of Internet finance is defined by two boundaries. The first boundary consists of traditional financial intermediaries and markets such as commercial banks, securities firms, insurance companies, and stock exchanges. The other boundary corresponds to walrasian general equilibrium where neither financial intermediaries nor markets exist. We propose that all the types of financial transactions and organizational structures that lie between those two boundaries and embody the impacts of Internet on finance activities belong to Internet finance. We further discuss the theoretical pillars, key characteristics and policy implications of Internet finance.
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