Research On The Impact Of Fintech On Commercial Banks’ Risk-taking

In recent years,the wave of financial technology has swept the world,bringing a huge impact to China’s banking industry,which has not only deepened the correlation between commercial banks,but also changed the transmission path and speed of risk propagation between banks.Especially at the current stage,preventing and resolving financial systemic risks is one of the important battles in China,and strengthening the risk prevention and control of commercial banks has become more and more important.In this context,it is urgent to study the impact mechanism between financial technology and commercial banks’ risk-taking.Clarifying the relationship between the two is of great practical significance for China’s fintech in the process of moving from local to full-scale application,grasping the strength and rhythm,and resolving and preventing systemic risks.Firstly,this paper explains the two basic theories of fintech and commercial bank risk-taking,fully analyzes the influence mechanism between them,and puts forward corresponding hypotheses;secondly,in order to explore the mechanism of fintech and commercial bank risk-taking more deeply,a simple theoretical model is constructed and analyzed at the theoretical level;finally,through the "text mining method + Finally,we construct a dynamic panel system GMM,a panel threshold model and a mediating effect model to investigate the impact of fintech on commercial banks’ risk-taking by constructing a fintech index based on Baidu search engine using annual data of 41 commercial banks from 2011 to 2021 as research samples.The empirical results show that: first,the relationship between fintech and commercial banks’ risk-taking shows an "inverted U-shaped" relationship in a specific interval,i.e.,with the development of fintech,the risk-taking of commercial banks tends to "rise first and then fall";second,the effect of fintech Second,the effect of financial technology on commercial banks’ risk-taking varies,with different types of commercial banks showing different sensitivities.When the threshold value is lower than 25.1343,fintech has a positive impact on commercial banks’ risk-taking;while when the threshold value exceeds 25.1343,the relationship between fintech and banks’ risk-taking reverses and has a significant negative impact;third,with the development of fintech,banks’ liquidity creation shows a trend of first decreasing and then increasing.Third,with the development of financial technology,bank liquidity creation shows a trend of first decreasing and then increasing,and assumes the role of part of the intermediary effect in the transmission process.Based on the findings,this paper puts forward targeted recommendations from the perspectives of commercial banks and regulatory authorities.For commercial banks: First,they should accelerate the pace of transformation and pay attention to the research and development of core areas of financial technology and its future layout;second,they should play their relative advantages according to their own situation and implement the concept of characteristic operation;third,they should strengthen intelligent risk control,actively introduce financial technology to make up for the defects of traditional risk control and form a long-term risk control mechanism.For the regulatory authorities: First,we should improve the regulatory system and strive to balance the relationship between regulation and fintech innovation;second,we should prudently guide commercial banks and encourage deep coupling between fintech and commercial banks under prudent principles;third,we should actively introduce regulatory technology and gradually apply fintech to regulation.