Research On The Impact Of Digital Finance On Commercial Banks Risk-taking

With the deep application of digital technology in the financial field,the traditional financial development model has been unable to meet the social needs,and digital finance came into being.Digital finance can not only help the further development of inclusive finance by improving the quality and efficiency of financial services,but also narrow the gap between rich and poor and maintain social equity.It is mentioned in the "Fourteenth Five Year Plan" and the Outline of Vision Goals for2035 that we should improve the modern financial system that is highly adaptable,competitive and inclusive,and promote the ability and mechanism of the financial industry to serve the real economy.In the same year,the People’s Bank of China extended the pilot program of the Central Bank’s Digital Currency(DCEP)to Shanghai,Hainan,Changsha,Qingdao,Dalian,Xi’an and other six provinces and cities,which is a major attempt made by the country to develop digital finance.Based on this,discussing the impact of digital finance on commercial banks’ risk bearing will help commercial banks to re identify and measure financial risks,so that digital finance can develop well under multi-directional monitoring,and thus prevent the occurrence of systemic financial risks.First of all,based on previous literature and theoretical basis,this thesis defines the concepts of digital finance and bank risk taking,distinguishes them from financial technology and bank risk,and visually describes the development status of digital finance and bank risk by looking up previous data.Secondly,based on the information asymmetry theory,franchise value theory and other theories on the impact of digital finance and bank efficiency,as well as the transmission mechanism of digital finance and bank risk bearing,this thesis analyzes the transmission role of changing the income side structure and improving the operation and management costs in digital finance and bank risk bearing.Thirdly,take China Construction Bank as a case to analyze the relationship between digital financial instruments and bank risk taking,deeply study the "three strategies" implemented by China Construction Bank,and get the conclusion that digital finance can improve bank risk taking.Finally,this thesis selects the relevant data of 84 commercial banks listed in China from 2012 to 2020,and uses the generalized moment estimation(GMM)and intermediary effect model to conduct an empirical test on the impact of digital finance on bank risk taking.The empirical results show that digital finance significantly improves the level of bank risk bearing;And digital finance affects the level of bank risk bearing by increasing the cost of bank operation and management and changing the structure of bank income side.The results of heterogeneity analysis further show that the income structure mechanism significantly affects joint-stock banks and state-owned banks,while urban commercial banks and rural commercial banks are more affected by operating and management costs.To sum up,the development of digital finance will improve the risk bearing level of China’s commercial banks.To ensure the smooth and orderly development of commercial banks and even the whole economy and society,all sectors of society need to participate in and guide correctly.Therefore,based on the two perspectives of the bank itself and the regulatory authority,the thesis provides countermeasures and suggestions for commercial banks to make full use of digital finance.From the bank’s own perspective: first,formulate a detailed development plan to gradually reduce operating and management costs;Second,rely on digital technology to promote the optimization and upgrading of income structure;Third,improve the risk management framework and improve the level of risk management.From the perspective of regulators: First,improve the financial regulatory system and build a harmonious and open market;Second,set up information disclosure and reward and punishment mechanism to improve the level of supervision and management;Third,promote interest rate market and prevent liquidity risk.