Research On The Influence Of The Development Of Digital Inclusive Finance On The Credit Risk Of Commercial Banks

With the continuous progress of financial technology,digital inclusive finance has gradually formed a stable business form.At the same time,China’s commercial banks are in the period of transformation and upgrading.Facing the technological and open development of finance,the traditional business model of commercial banks has been unable to match the needs of the financial market.Under the circumstance that the digital development trend of inclusive finance is irreversible,how commercial banks integrate financial technology and leverage the development of digital inclusive finance to achieve transformation and upgrading has become a key issue in the development of China’s commercial banking industry.Basically,this study focuses on the impact of digital inclusive finance on the credit risk of commercial banks,clarifies the path and extent of the impact of digital inclusive finance on the credit risk of commercial banks,and plays a positive role in the further development of digital inclusive finance and the long-term development of commercial banks.Based on the long tail theory,financial intermediation theory and platform economy theory,this study first puts forward corresponding assumptions on the relationship between digital inclusive finance and credit risk of commercial banks in China,and constructs an empirical model for regression.The empirical results show that there is an inverted "U" shaped relationship between digital inclusive finance and the credit risk of commercial banks in China.In the early stages of the development of digital inclusive finance,non bank financial institutions quickly occupied the market with advanced financial technology and invaded the traditional commercial banking market with advantages such as low loan interest rates,low thresholds,and convenience.The commercial banking market was greatly impacted,Many commercial banks have started to maintain their income levels through risky investments,leading to an increase in credit risk.However,with the further development of digital inclusive finance,the supervision of financial technology and financial technology enterprises in the financial market is gradually strengthening.Digital inclusive finance has a positive effect on the credit risk of commercial banks,and the introduction of financial technology has improved the internal information management level and risk monitoring ability of commercial banks,which helps to reduce bank credit risk.The regression results of digital inclusive finance in three dimensions of coverage breadth,depth of use,and degree of technological support show that the regression results of coverage breadth and degree of technological support are consistent with the results of the digital inclusive finance index,while the regression results of using depth index are not significant.Moreover,through heterogeneity grouping regression,this study also found that there are differences in the impact of digital inclusive finance on the credit risk of different types and regions of commercial banks.Some large commercial banks in China are not sensitive to market changes caused by the development of digital inclusive finance,and national joint-stock commercial banks,urban commercial banks,and rural commercial banks will all be negatively impacted by the development of digital inclusive finance to a large extent.In the eastern region with a relatively high level of economic development,due to the good financial environment and basic conditions,and the relatively stable market environment,the credit risk of commercial banks in this region is not vulnerable to the impact of the development of digital inclusive finance,while in the central and western regions,due to the insufficient development of their own financial conditions,the overall scale of regional commercial banks is small,and their wind defense ability and profitability are limited,Vulnerable to market changes caused by external factors such as the development of digital inclusive finance.In addition,the net interest margin of commercial banks has a significant mesomeric effect between digital inclusive finance and credit risk of commercial banks in China.Based on empirical research,this article finally proposes corresponding suggestions and policies from both the internal and government levels of commercial banks,providing reference for the long-term sustainable development of commercial banks under the development of digital inclusive finance.