Digital transformation, monetary policy and risk-taking of banks

Qiaoying Ding and Wensheng He

Finance Research Letters, 2023, vol. 55, issue PB

Abstract: This paper studies how the digital transformation affects the monetary policy on the risk-taking mechanism of banks. It is found that moderately loose price-based and quantitative-based monetary policies can expand bank risk-taking, and the digital transformation weakens the monetary policy's regulation mechanism on bank risk, compared with city commercial banks, agricultural commercial bank and other small and medium-sized banks, state-owned, joint-stock and other large banks can more ease the impact of internet finance on the monetary policy control mechanism. The conclusion of this paper can provide reference for making macro-monetary policy and mitigating bank risk.

Keywords: Digital transformation; Price-based monetary policy; Quantitative monetary policy; Bank risk level (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:55:y:2023:i:pb:s1544612323003586

DOI: 10.1016/j.frl.2023.103986

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