Research On The Impact Of Fintech On Credit Risk Level Of Chinese Commercial Banks

With the deep propel of the fourth industrial revolution and the rapid integration of finance and technology,fintech has sprung up.At the initial stage of fintech,new fintech business models such as P2 P online loan,crowdfunding and third-party payment brought unprecedented risks and challenges to commercial banks,but with the widespread popularization and rapid development of fintech,the relationship between fintech and commercial banks has gradually shifted from initial competition to widespread fusion.And the bank risk control system using emerging technologies such as big data,blockchain and artificial intelligence has greatly changed the credit risk level of commercial banks in China.As uppermost risk facing by commercial banks,the credit risk prevention has always been fatal for all commercial banks.Therefore,it's theoretically and practically meaningful to analyze the impact of fintech on credit risk level of commercial banks systematically.This paper innovatively analyzes the impact of fintech on the credit risk level of commercial banks.Firstly,on the basis of summary of relevant research on fintech at home and abroad,this paper expounds the connotation and development status of fintech and the application of fintech in the field of commercial bank credit risk management.Then establishes the fintech index with the help of text mining method and factor analysis method,and then combine the marginal effect of profit and the theory of information asymmetry to analyze the specific impact mechanism of fintech on the credit risk level of commercial banks in China,this paper proposes that in the early stage of fintech development,the credit risk level of commercial banks will be improved by intensifying competition,and with the tightening of supervision and the strengthening of commercial banks' emphasis on fintech,fintech has turned to lower the credit risk level of commercial banks.On the above basis,this paper establishes econometric model based on panel data of 24 commercial banks in China from 2005 to2017,and verifies the impact of fintech on the credit risk level of commercial banks in China through difference and systematic GMM.The empirical research results show that fintech has a significant inverted U-shaped impact on the credit risk level of commercial banks in China.At the same time,the impact of fintech on the credit risk level of commercial banks in China is heterogeneous.The response of state-ownedcommercial banks to the impact is slow,while small and medium-sized commercial banks are relatively sensitive to the impact of the response.Finally,combined with the analysis results,this paper puts forward the development suggestions of fintech from the perspective of bank and government supervision.