Research On The Impact Of Financial Technology On Bank Risk

In August 2019,the Central Bank issued the FINTECH development plan(2019-20212021)to construct the top-level design of the Fintech "Four pillars and eight pillars",the Development Direction and task,path and boundary of financial science and technology are clarified.After the release of the "Development plan",commercial banks and other rapid improvement of top-level design,the development of financial technology planning.At the same time,the development of science and technology is also a "Double-edged sword".While speeding up "Financial disintermediation",improving the efficiency of resource allocation and reducing transaction costs,also exposed the lack of wind control means and inadequate regulatory capacity and other issues.How to evaluate the impact of Fintech on the banking industry,especially on different types of banks,how to optimize the allocation of regulatory resources and how to enhance the effectiveness of supervision are the urgent issues to be discussed by the regulatorsThis project is based on this background,collecting nearly 290 commercial banks from 2009 to 2020 as samples,using panel data analysis method,using fixed effect model to control individual and time,to explore the impact of financial technology on bank risk,and can provide the supervisory decision-making basis for our country banking steady operation and the high quality developmentThe innovation of this paper is mainly embodied in the research perspective.Although the previous literature concerned about the impact of financial technology on bank risk,but did not decompose the bank risk.This paper mainly discusses the relationship between Fintech and bank risk,using ZSCORE to measure bank risk,and dividing ZSCORE into return on assets,return on assets volatility and equity assets ratio,probing into the concrete path of financial science and technology influencing the operational risk of banks.In addition,although the existing literature has studied the non-linear(inverted u-shaped)relationship of the impact of financial technology on bank risk,it has not discussed the bank heterogeneity of the u-shaped relationship,this paper further discusses the Heterogeneity of u-shaped relationship curves for different types of banksOne of the results is that Fintech can help to improve the profitability of banks,and thus improve the return on assets,reduce the volatility of return on assets,and thus reduce the risk of banks.The other is that there is an inverse u-shaped relationship between Fintech and bank risk,that is,when Fintech develops to a certain stage and level,Fintech will increase bank risk。The Third,the impact of financial technology on the risk of banks,different types of banks exist heterogeneous problems.