Research On The Impact Of Financial Technology On The Liquidity Creation Of Commercial Banks

Over the last few years,with the rapid development of cutting-edge technologies such as artificial intelligence,big data and cloud computing,financial technology has become stronger and stronger,and has been more closely integrated with the traditional financial industry.The financial technology ecosystem has gradually formed.China’s commercial banks play an important role in the financial system,connecting the two ends of finance and entities,and playing an important role in liquidity creation.Banks transform the assets with high liquidity obtained from debt business into funds with low liquidity through asset business,and create liquidity in the process of providing credit support for enterprises and individuals.The continuous application of financial technology in commercial banks can produce a technical promotion effect and promote the increase of liquidity creation to a certain extent,but it also causes the competition between financial technology companies and commercial banks to a certain extent,grabs the share of commercial banks,and inhibits the creation of liquidity.Therefore,in the context of the rapid development of financial technology,exploring the impact of financial technology on liquidity creation,analyzing and testing the impact mechanism and putting forward suggestions will have practical significance in supporting the development of the real economy and restraining the financial industry from falling off the real to the virtual.After combing and studying the relevant literature of Fintech and liquidity creation,this paper first clarifies the concept of Fintech and introduces its main components,then defines the concept of liquidity creation and analyzes the mechanism of liquidity creation.Secondly,it describes the current situation of financial technology from the aspects of policy and supervision,financial technology investment of major commercial banks and application status,and analyzes the current situation of liquidity creation by comparing the liquidity creation value of commercial banks in recent years.Then,the paper analyzes the mechanism of the impact of financial technology on the liquidity creation of commercial banks,explores its transmission mechanism and the existing heterogeneous impact,and puts forward relevant assumptions.Based on the above analysis and referring to the existing literature,we selected the annual statements and data of 24 listed commercial banks from 2011 to 2020 to construct the liquidity creation index using BB index,and the financial technology index based on Baidu index used individual fixed effect for benchmark regression,and used the medium effect model to test its path,and used GMM model and alternative core explanatory variables for robustness test,and finally conducted heterogeneity analysis.The results show that financial technology has an inhibitory effect on liquidity creation;Fintech will have a technical promotion effect in the asset business of commercial banks,but it will have a crowding inhibition effect in the liability business,generally speaking,it has a inhibition effect;Financial technology has a more obvious inhibitory effect on urban banks than national banks;In the period of rapid development of financial technology,the inhibitory effect is even greater.