Study On The Impact Of Digital Finance Development On Risks Of Chinese Commercial Banks

Digital finance is the technical exploration of financial institutions in the digital age.Financial products and services can be optimized and improved with the help of the Internet and big data technology,which brings about great changes in the market layout and business development of the traditional financial industry represented by commercial banks.At present,the digital economy has become an important force for improving the quality and efficiency of enterprises and promoting high-quality economic and social development.The report of the Party’s 20 th National Congress proposed to accelerate the development of the digital economy and promote the deep integration of the digital economy and the real economy.On February 27,2023,the CPC Central Committee and The State Council issued the Overall Layout Plan for the construction of Digital China,pointing out that it is necessary to comprehensively empower economic and social development,accelerate the innovation and application of digital technology in agriculture,industry,finance,education,medical care,transportation,energy and other key areas,and promote the deep integration of digital technology and the real economy.Digital finance has lowered the threshold and cost of financial services.It is a financial form that supports the real economy and serves the digital economy more efficiently.Therefore,accelerating the layout of digital financial market and promoting the digital transformation and upgrading of financial products and services have become the only choice for commercial banks to deploy troops.However,as a new product of cutting-edge digital technology enabling traditional finance,digital finance has both technological and financial attributes and is a "double-edged sword".While bringing technical dividends to commercial banks,it also makes commercial banks face many risks and challenges such as financial technology innovation,data information management and financial resource competition.Under the background of digital economy,it is of practical significance to explore the relationship between the development of digital finance and the risk of commercial banks.Based on the literature review of the connotation and impact of digital finance,the risk identification and measurement of commercial banks,the impact of digital finance on the risk of commercial banks,and combined with the experience basis of the development of digital finance in our country,this paper systematically combs the risk conditions of commercial banks in the context of the development of digital finance.At the same time,the influence and heterogeneity of the development of digital finance on the risk level of commercial banks are deeply analyzed.Based on this,this paper takes 52 banks as research samples(25 urban commercial banks,11 rural commercial banks,5 large state-owned banks and 11 joint-stock banks),adopts the balanced panel bidirectional fixed effect model,and makes an empirical analysis on the impact of the development of digital finance on the risk of commercial banks.The main research conclusions are as follows:(1)The development of digital finance has a significant negative impact on the risks of Chinese commercial banks,that is,the development of digital finance can reduce the risks of commercial banks;(2)The impact of digital finance development on the risk of commercial banks in different types and regions is heterogeneous,that is,compared with large and medium-sized banks,the impact of digital finance development on the risk of small banks is more obvious,and the impact on the risk of banks in eastern regions is more significant than that in central and western regions.Finally,based on the demonstration results and combined with the reality of digital upgrading and business structure optimization of commercial banks,this paper puts forward relevant suggestions from the perspectives of commercial banks and government departments,so as to promote commercial banks to reasonably control risk levels and achieve maximum benefits with the help of the rising trend of digital finance.