| In recent years,with the continuous development and maturity of digital technology and the combination with traditional finance,it has brought a huge change to the traditional financial industry.Under the influence of the rapid development of digital finance,the competition for deposits has been intensified,the market share of settlement business has been squeezed,and large commercial banks have improved their online service capabilities.As a result,the deposit pressure of city commercial banks which have a high concentration of corporate business increased sharply,and their profitability has been tested.It also prompts city commercial banks to actively seek new development paths and to use digital technology to transform and make breakthroughs.As an important part of our country’s banking system,city commercial banks are based on local development,so how will the development of digital finance affect their risk-taking,how to promote their healthy and sustainable development under the impact of development of digital finance,guaranteeing their role in promoting local economic development,and maintain local financial stability has become an important research topic.At present,there are relatively few research results on the micro-mechanisms of the impact of the development of digital finance on the risk-taking of city commercial banks.This research broadens the research perspective from the changes and development brought by digital finance,and comprehensively analyzes the impact of the development of digital finance on the risk-taking of city commercial banks through both theoretical analysis and empirical research.It will help city commercial banks to understand more comprehensively and systematically about digital finance,and focus on risk management and prevention during their transformation with the help of digital finance.And for financial regulators,they can formulate more effective regulation while supporting the development of digital finance.This paper first reviews the relevant literature on the relationship between digital finance and commercial banks’ risk-taking,and then theoretically analyzes three channels through which the development of digital finance affects city commercial banks’ risk-taking,and puts forward corresponding hypotheses.In the empirical part,this paper selects the provincial-level digital financial inclusion index as the core explanatory variable,and uses the panel data of 113 city commercial banks from year 2011 to 2020 to establish linear regression models for empirical analysis,exploring the impact of the development of regional digital financial on the risk-taking of local city commercial banks from the perspectives of liability side,asset side and intermediary business.The research results show that:(1)The development of digital finance will divert city commercial banks’ deposits,increase the cost of their liabilities,increasing liquidity risks,and city commercial banks with larger asset scale will be less affected;(2)The development of digital finance has enriched the financing options of individuals and enterprises.In terms of credit,instead of competing with banks,digital finance is more to meet the financing needs of customers who banks do not lend to.City commercial banks can absorb the advantages of using digital finance to alleviate information asymmetry,thereby reducing the risk of bankruptcy;(3)The development of digital finance has impacted the intermediary business of city commercial banks,reducing customer viscosity and increasing income volatility.City commercial banks with larger net interest margins will be more impacted.In the end,suggestions are made to city commercial bank operators and regulators based on theoretical and empirical research results. |
