An Empirical Study on the Impact of Digital Finance on the Systematic Risk of Commercial Banks

Lihua Zuo () and Hongchang Li ()
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Lihua Zuo: Taishan University
Hongchang Li: Beijing Jiaotong University

A chapter in LISS 2023, 2024, pp 178-202 from Springer

Abstract: Abstract Based on the data analysis of 50 domestic commercial banks from 2011 to 2021, this paper empirically verifies the principle and influence channel of digital finance on Systematic risk of banks. Through empirical analysis, it can be seen that the development of digital finance promotes Systematic risk of banks. Through empirical analysis, the development of digital finance has promoted the Systematic risk of banks and has heterogeneous characteristics. The development of digital finance has played a greater role in promoting the Systematic risk of non-public banks. The relationship between financial disintermediation, business competition, credit concentration and Assumption of risk and the Systematic risk of banks has multiple Mesomeric effect. Digital finance promotes Systematic risk of banks through financial disintermediation, and inhibits Systematic risk of banks through business competition, credit concentration and Assumption of risk. The promotion of financial disintermediation on Systematic risk hedged the inhibition of banking competition, Assumption of risk and loan agglomeration, and ultimately increased the Systematic risk of banks. The benign development of urbanization has intensified the promotion of digital finance on Systematic risk of banks, and the increase of domestic demand scale has weakened the promotion of digital finance on Systematic risk of banks.

Keywords: digital finance; commercial bank; systemic risk; total factor productivity Introduction (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:spr:lnopch:978-981-97-4045-1_15

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DOI: 10.1007/978-981-97-4045-1_15

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