Research On The Impact Of Fintech On The Credit Risk Of China’s Listed Commercial Banks

In recent years,fintech has flourished with the support of emerging technologies and innovative businesses have emerged in an endless stream,which has had a profound impact on the financial system.More and more listed commercial banks have begun to accelerate the construction of the fintech system and focus on the development of fintech.On the one hand,listed commercial banks apply big data,artificial intelligence,blockchain and other technologies to the risk prevention and control system,build high-quality comprehensive service platforms,and innovate business models to improve operating benefits and operational efficiency,which improves the current credit risk management situation of listed commercial banks.On the other hand,factors such as the diversion of deposit and loan business by fintech companies,the large investment and slow effect of listed commercial banks in the layout of fintech,and the technical risks of fintech themselves increase credit risks through multiple paths.In view of this,this paper makes an in-depth analysis of the mechanism of fintech affecting the credit risk of listed commercial banks based on the current development situation of fintech in China,which has important theoretical and practical significance for promoting the healthy development of listed commercial banks and maintaining the stability of the financial system.Based on the review and summary of relevant concepts of fintech and credit risk of commercial banks and existing literature,this paper expounds the development process of fintech,its development status in China and its application status in the credit risk management of listed commercial banks in China.Then,relevant theories are introduced and based on this,the influence mechanism of financial technology on the credit risk of our listed commercial banks is deeply analyzed.Finally,using the panel data of 40 listed commercial banks in China from 2011 to 2021 and the bank-level fintech development index constructed by text mining and factor analysis,the two-way fixed effect model is used for regression analysis,robustness test and heterogeneity analysis,and the following conclusions are drawn: 1.The development of fintech first promotes and then inhibits the credit risk of listed commercial banks,showing an inverted U-shaped change.In the early stage of fintech development,the credit risk level faced by listed commercial banks has gradually increased due to various factors such as the diversion of fintech enterprises from traditional banks’ business,the large amount of human and material resources invested by banks in the development of fintech,the transformation of customer groups and the immaturity of fintech technology level.With the continuous deepening of the development of fintech,the operating ability and risk control ability of listed commercial banks have been strengthened,and banks can better prevent the occurrence of credit risks and deal with the loss of credit risks.2.The development of fintech has a heterogeneous impact on systemically important banks and non-systemically important banks in listed commercial banks.Systemically important banks have large assets,many management levels,complex business structures and stricter regulatory requirements,so their credit risk taking level is slow to respond to the impact of fintech.However,non-systemically important banks have small scale,relatively weak financial strength and imperfect credit risk management system,which makes their credit risk level vulnerable to changes under the influence of fintech and more responsive.Based on the research conclusions,this paper puts forward the following targeted suggestions: On the banking level,on the one hand,listed commercial banks should continue to optimize the credit risk management process by using fintech,constantly improve the credit approval mechanism,and strengthen the introduction of talents,focusing on training compound fintech talents.On the other hand,fintech development strategies should be formulated according to banks’ market positioning and their own development needs.On the government level,the government and relevant regulatory authorities should always pay attention to the latest developments of fintech development,play the role of supervision and guidance,and continuously establish and improve fintech related regulatory laws and regulations.At the same time,they should promote the integration of regulation and technology,update regulatory technology and means,further improve regulatory efficiency and achieve effective regulation.