The Impact Of Fintech Firms On The Credit Risk Of Commercial Banks

With the rapid development of fintech,fintech firms have become the focus of social attention.Fintech firms are non-traditional enterprises that use technology as a sharp knife to cut into the financial field,seize the market with more efficient technological means,improve the efficiency of financial services and better manage risks.Fintech firms bring opportunities and competition to commercial banks’ credit risk management.By combing the research on the impact of fintech firms on commercial banks,it is found that there are few articles on the relationship between fintech firms and commercial banks’ credit risk,and few articles deeply explore the impact mechanism of fintech firms on commercial banks’ credit risk.Based on this,this paper makes theoretical and empirical analysis on the impact of fintech firms on the credit risk of commercial banks.First,analyzing the "technology spillover effect" and "competition effect" of fintech firms on commercial banks from the theoretical level."Technology spillover effect" refers to fintech firms have technology spillover to commercial banks,and commercial banks learn emerging technologies to reduce their credit risks."Competition effect" refers to the competitive relationship between fintech firms and commercial banks,which has an impact on the profitability of banks.In order to make up for losses and compete for profits,commercial banks will excessively relax risk control standards and expand credit scale.These behaviors will lead to an increase in banks’ credit risk.Secondly,based on the balanced panel data of 76 commercial banks in China from 2011 to 2020,the fixed effect model and the mediation effect model are used to verify the above two effects;further heterogeneity analysis is carried out on different types of commercial banks;the robustness test is carried out by changing the core explanatory variables,using the dynamic GMM model,using the robust standard error and trimming the sample by 1%.The results show that fintech firms have a "competition effect" on commercial banks,and the specific effects are as follows:(1)Fintech firms will increase the credit risk of commercial banks.(2)Fintech firms reduce the profitability of commercial banks,which leads to an increase in bank credit risk.(3)Fintech firms have a stronger effect on improving the credit risk of unlisted commercial banks than listed commercial banks,fintech firms have a greater impact on the credit risk of regional commercial banks than national commercial banks.Finally,according to the research conclusions,five suggestions are put forward for Chinese commercial banks:(1)Clarify the strategic position of fintech;(2)Encourage research and development of fintech;(3)Cultivate fintech talents;(4)Strengthen cooperation with fintech firms;(5)Establish a fintech subsidiary.