Research On The Impact Of Digital Inclusive Finance On The Credit Risk Of Rural Commerical Bank

Commercial banks have multiple functions such as credit intermediation and credit creation,and rural commercial banks play a very important role in Chinese financial grassroots market,relying on deposit business to absorb funds and provide financial services to individuals and enterprises,but the credit risk and market risk caused by these financial services are not conducive to the sustainable development of banks.In the ten years from 2011 to 2020,Chinese digital financial inclusion index rose more than 10 times,with an average annual growth of 29.1%,even in 2020,the most serious year of the Covid-19,the index still reached a growth rate of 5.6%,and the fierce market competition will have a certain impact on the credit risk of banks.Therefore,clarifying the impact of digital finance development on credit risk of rural commercial banks can support their better use of digital transformation.This paper firstly starts from the theory,combs the research results of domestic and foreign scholars to clarify the mechanism of action,secondly,by making an analysis of the connotation of credit risk of commercial banks in digital inclusive finance,takes information asymmetry theory,long tail theory and profit margin effect as the theoretical basis to explore the impact of digital inclusive finance on the credit risk of rural commercial banks from three aspects,namely risk control,customer group and deposit and loan business,respectively.Finally,a random effects model is constructed using data from 29 rural commercial banks as the sample size to empirically analyze the impact of digital inclusive finance on the credit risk of rural commercial banks,and to consider different dimensions of digital finance and different regions to study its heterogeneity.According to the empirical results,the proposed hypothesis can be confirmed that with the deep integration of digital technology and inclusive finance,the credit risk of agricultural commercial banks has a "U" shaped impact of decreasing before increasing,and there are heterogeneous effects of different dimensions of digital inclusive finance on the credit risk of rural commercial banks and digital inclusive finance on agricultural commercial banks in different regions.From the perspective of banks,they should change their traditional business philosophy,optimize their deposit and loan structure and control risks,while from the perspective of regulation,the government should improve the regulatory framework of digital inclusive finance and accelerate the construction of an interoperable social credit system to help rural commercial banks better provide digital inclusive financial services and realize their own differences.Win-win situation.