Impact of Digital Finance on Credit Structure and Risk-Taking in Commercial Banks: An Empirical Analysis
DOI:
https://doi.org/10.58557/(ijeh).v4i3.251Kata Kunci:
Digital Finance, Credit Structure, Risk TakingAbstrak
With the rapid growth of new technologies such as big data, digital technology is increasingly permeating our daily lives. Financial institutions, particularly commercial banks, are also seizing opportunities in the wave of digital financial development to provide better financial services. However, this development in digital finance has affected the credit structure and risk-taking of banks. This study aims to empirically analyze the impact of digital finance development on the credit structure and risk-taking of commercial banks. Additionally, the study seeks to discuss how the combined effects of digital finance and credit structure influence bank risk-taking. Empirical analysis is conducted using financial data from commercial banks over the past decade. The analytical methods include collecting secondary data, statistical data processing, and regression analysis to evaluate the relationships between digital finance development, credit structure, and bank risk-taking. The empirical analysis results show that the development of digital finance has promoted an increase in the scale of bank credit and the ratio of personal loans to credit loans. Integrating digital finance with banks has proven to reduce the risk burden banks bear. Furthermore, as digital finance continues to develop, adjustments in the bank's credit structure also affect the risk burden borne by the banks. Based on these findings, it is recommended that commercial banks continue to adopt digital financial technologies to increase their credit scale and optimize their credit structure. Additionally, banks should consider developing policies that support integrating digital technologies to reduce risk burdens and enhance financial stability. Further research is also suggested to explore the long-term impact of digital finance on the overall financial performance and risk of banks
Referensi
Bmer, M., & Maxin, H. (2018). Why fintechs cooperate with banks—Evidence from Germany. Zeitschrift für die gesamte Versicherungswissenschaft, 107(3), 221-234.
Chen, Y. (2021). Digital Finance and Banking Efficiency: A Study of Technological Impacts on Financial Institutions. Financial Innovation Journal, 11(3), 45-67.
Gao, L. (2021). Long-term Implications of Digital Finance on Economic Development. Economic Research Review, 29(4), 123-145.
Guo, F., Wang, J., Wang, F., Kong, T., Zhang, X., & Cheng, Z. (2020). Measuring the development of digital financial inclusion in China: Index compilation and spatial characteristics. Economics (Quarterly), 4, 1401-1418. https://doi.org/10.13821/j.carolcarrollnki.ceq.2020.03.12
Jin, H., Li, H., & Liu, Y. (2020). Financial technology, bank risk, and market crowding out effect. Study of Finance and Economics, 5, 52-65. https://doi.org/10.16538/j.carolcarrollnki.jfe.2020.05.004
Li, C. S., & Shen, Y. (2019). Identification, measurement, and prevention of risks of new financial forms in the era of digital economy. Management World, 12, 53-69. https://doi.org/10.19744/j.cnki.11-1235/f.2019.0163
Li, X. (2022). The Development and Impact of Digital Finance in China. Journal of Financial Technology, 15(2), 101-120.
Liang, J. (2023). Technological Advancements and Financial Risk Management. Journal of Financial Studies, 19(1), 89-110.
Liu, W., Liu, W., Dai, B., & Lv, T. (2022). Digital finance, loan structure, and risk-taking of commercial banks: An analysis of financial data of 181 commercial banks from 2011 to 2020. Wuhan Finance, 7, 29-40.
Liu, Z. (2016). Study on the impact of Internet finance on risk-taking of commercial banks. Finance and Trade Economics, 4, 71-85. https://doi.org/10.19795/j.cnki.cn11-1166/f.2016.04.007
Liu, Z. (2019). Digital Transformation in Traditional Banking. China Banking Review, 25(2), 72-90.
Ma, Y. (2022). Regulatory Policies and Credit Structure Adjustment. China Economic Policy Journal, 14(3), 58-77.
Nie, X., Jiang, P., Zheng, X., & Wu, Q. (2021). Research on digital finance and regional technological innovation level. Research in Finance, 3, 132-150.
Sheng, T., Wang, Y., & Fan, Y. (2017). Interest rate instruments, bank decision behavior, and credit term structure. China's Industrial Economy, 12, 22-39. https://doi.org/10.19581/j.carolcarrollnki.ciejournal.20171214.008
Sun, H. (2021). Financial System Vulnerabilities and Regulatory Responses. Journal of Economic Risks, 13(4), 34-52.
Sun, X., Wang, K., & Wang, F. (2020). Financial technology, competition, and bank credit structure: From the perspective of SME financing. Journal of Shanxi University of Finance and Economics, 6, 59-72. https://doi.org/10.13781/j.cnki.1007-9556.2020.06.005
Wang, J., & Huang, Y. (2018). Portrayal of financial technology media sentiment and its impact on the online loan market. Economics (Quarterly), 4, 1623-1650. https://doi.org/10.13821/j.carolcarrollnki.ceq.2018.03.15
Wang, Q. (2020). Enhancing Banking Operations through Digital Finance. Journal of Banking Efficiency, 17(2), 88-104.
Wei, X. (2019). Risk and supervision of digital inclusive finance. Financial Theory and Practice, 6, 49-54.
Wu, X. (2021). Financial technology and credit structure adjustment. Journal of Finance, 12, 75-89.
Wu, Y., Li, C., Li, X., & Yi, D. (2020). Study on the influence and mechanism of the development of digital finance on the traditional private lending market. Management World, 10, 53-64, 138, 65. https://doi.org/10.19744/j.cnki.11-1235/f.2020.0153
Xie, J., & Wu, J. (2020). Digital finance, credit constraints, and household consumption. Journal of Central South University (Social Science Edition), 2, 9-20.
Xu, X., Li, H., & Ge, Y. (2021). Can the application of Fintech promote the adjustment of bank credit structure? -- Quasi-natural experimental research based on bank cooperation with foreign countries. Study of Finance and Economics, 6, 92-107. https://doi.org/10.16538/j.carolcarrollnki.jfe.20210113.101
Zhang, Y. (2023). Credit Structure Adjustment and Financial Risk Management in China's Banking Sector. China Banking Review, 28(4), 35-56.
Zheng, L. (2014). Internet finance in China: Model, influence, essence, and risk. International Economic Review, 5, 103-118, 6.
Zhou, W. (2020). Financial Supply-Side Reform and Risk Management. Journal of Financial Stability, 16(1), 59-78.
Unduhan
Diterbitkan
Cara Mengutip
Terbitan
Bagian
Lisensi
Hak Cipta (c) 2024 Zhang Zhihui
Artikel ini berlisensiCreative Commons Attribution-ShareAlike 4.0 International License.
