Research On The Spillover Effect Of Financial Technology On Financial Systemic Risk

At present,financial technology plays an increasingly important role in the application of financial industry.Financial technology innovation or fintech generally refers to technology driven financial innovation.On the one hand,financial technology has changed the types of risks in the financial industry;On the other hand,the continuous development of financial technology will increase the risk complexity of the financial industry and bring more unpredictability.With the development of financial technology,how to avoid risks has become a major problem.This essay focuses on the risk measurement and Risk Spillover of financial technology.In order to judge the role of financial technology in China's financial industry under the background of continuous integration of financial technology into China's financial industry,it is necessary to establish financial technology index to measure the risk of financial technology.Firstly,the financial technology index is constructed based on stock data,and the Risk Spillover level of financial technology to securities,insurance and banking is judged by calculating the value at risk and Risk Spillover Effect of financial technology index.Then,financial technology,securities,insurance and banking are included in the whole financial system for analysis and Risk Spillover comparison,the essay analyzes the role of financial technology in China's financial system,and plays a more practical research role in today's increasingly obvious impact of financial technology.In the theoretical analysis part of the model,combined with the definition of financial technology and the research of many literatures,the relevant data of financial technology stocks were collected and they were weighted to establish the financial technology index.Then,using the stock return data of securities,insurance,financial technology,technological innovation,state-owned banks and joint-stock banks from December 14,2017 to December 14,2020,the GARCH-Copula-CoVaR model is used to analyze the Risk Spillover Effects of financial technology and financial systems.Combined with the complex network diagram,this essay brings multiple financial systems into the whole,analyzes the interaction of financial technology,securities index,insurance index,innovation index,state-owned banks and joint-stock banks' Risk Spillover value,and studies the spillover effect of financial technology on financial systemic risk.The results show that the Risk Spillover Effect of each financial system is very significant.Copula correlation analysis shows that there is a high correlation between securities,insurance and banks.The securities industry has a high value at risk,but also has a high risk spillover effect on the banking industry,which reflects the value relevance and risk contagion of "shadow banking" to commercial banks.The low correlation between financial technology and banks indicates that they are relatively less dependent on banks and other pillar financial systems,and realize value enhancement mainly through independent innovation and scientific research.The correlation analysis of Risk Spillover shows that commercial banks have the strongest impact on the Risk Spillover of financial technology,and the risk impact of financial technology on state-owned banks and joint-stock banks is relatively balanced.Financial technology is the net recipient of Risk Spillover in the financial system,and it is very vulnerable to the risk impact of banks.The financial technology,as an emerging financial field,is closely related to the banking industry.When the risk of financial technology occurs,the Risk Spillover Effect on other financial systems is not strong,but when it is impacted by the risk,it will show a certain degree of instability and vulnerability,so it is necessary to strengthen its protection measures,and do a good job in risk early warning and risk supervision.In addition,increasing investment in financial technology enterprises and encouraging the application of financial technology in the financial field can appropriately transfer risks and avoid the occurrence of risk aggregation disasters.The test results of science and technology innovation and financial technology index are similar,which have the characteristics of low value at risk,low risk spillover effect and easy to be impacted by risk.While protecting and encouraging the innovation and development of financial science and technology,we should make a forward-looking assessment on the infectivity and concealment of its risks.At the same time,the supervision of science and technology financial departments should be strengthened to prevent the inflow of funds into departments that do not meet the national regulations,and at the same time,the risks brought by science and technology innovation should be strictly controlled.The balance of financial technology innovation should be established.The ability of risk prevention and control should also be strengthened to promote the healthy development of financial technology innovation in China.