Research On The Impact Of Digital Finance On The Risk-Taking Of Chinese Commercial Banks

In recent years,China’s digital finance has developed rapidly,continuously promoting the digital transformation of commercial banks,and also having a profound impact on the risk-taking of commercial banks.On the one hand,digital finance squeezes the bank’s "deposit,loan and remittance" business,and on the other hand,it improves the bank’s operating efficiency and risk control ability through technical means.In addition,bank competition,as an external environment,will have an impact on the relationship between digital finance and the risk-taking of banks.As the largest service sector of China’s real economy,the risk-taking level of banks affects the stability of the entire finance and economy.Exploring the benign development path of commercial banks under the wave of digital finance can help prevent and resolve financial risks and promote economic stability.Therefore,this paper focuses on the impact of digital finance on the risk-taking of commercial banks.Based on the sorting out of relevant literature and related theories such as financial disintermediation,this paper analyzes the impact of digital finance on the risk-taking of commercial banks from the aspects of "crowding out effect" of the business and "technology spillover effect" of digital finance on commercial banks,analyzes the heterogeneity of the impact of digital finance on the risk-taking of commercial banks according to the characteristics of different types of banks,and analyzes the regulating role of bank competition in the process of influence based on the actual background of China’s banking industry,and puts forward the research hypotheses on this basis.In order to test the hypotheses,this paper selects the panel data of 122 commercial banks of China from 2011 to2020 as the research object,and uses the system GMM model of the dynamic panel for regression analysis.The empirical results show that digital finance significantly reduces the risk-taking of commercial banks.The impact of digital finance on the risk-taking of different types of commercial banks is heterogeneous,and the risk-taking effect on urban commercial banks is the largest,followed by joint-stock banks,large state-owned banks again,and rural commercial banks last.Bank competition has a positive regulating effect on the relationship between digital finance and the risk-taking of commercial banks,and the greater the competition between banks,the stronger the restraining effect of digital finance on banks’ risk-taking.Based on the empirical results,this paper puts forward relevant suggestions from two aspects of bank development and government supervision: commercial banks should adhere to the digital layout,actively use digital finance to improve risk control capabilities and operational efficiency to improve stability,and different types of banks should carry out differentiated layout to avoid waste of resources;Regulators should create a good environment for the development of digital finance with a positive attitude,and reasonably regulate bank competition to promote better integration of commercial banks and digital finance.