Research On The Impact Of Digital Transformation On The Comprehensive Performance Of Commercial Banks

The digital transformation of commercial banks is an important engine for highquality financial development,and an important starting point for promoting the deep integration of the digital economy and the real economy.Studying the impact of commercial banks’ digital transformation on their comprehensive performance can help the banking industry better promote digital transformation,form core competitiveness,and lay a solid foundation for high-quality financial development.This article first obtains the comprehensive performance index system of commercial banks based on the "three characteristics" principle of commercial bank management,and uses the principal component analysis method to obtain the comprehensive performance index of commercial banks.Secondly,using the Digital Transformation Index of Chinese Commercial Banks constructed by Wang Shihui and Xie Xuanli(2022),this paper examines the impact of digital transformation of commercial banks on their comprehensive performance from two dimensions: marginal effect and overall contribution.Marginal effects: Empirical testing is conducted using fixed effects,and heterogeneity analysis is conducted based on the digital dimensions of commercial banks’ digital transformation strategy,business,and management,as well as the dimensions of bank category,asset size,and whether to go public.In terms of contribution,the regression-based decomposition method is used to investigate the overall contribution of digital transformation of commercial banks to comprehensive performance over the years.Thirdly,based on the above research,this paper examines the transmission mechanism of digital transformation of commercial banks for comprehensive performance,focusing on three dimensions: credit structure at the asset end,financing structure at the liability end,and business structure at the business end.The regression results are as follows: First,the marginal effect of digital transformation of commercial banks on overall performance improvement is significant,and it can play a positive role in risk management,liquidity level,and profitability.The results of heterogeneity analysis indicate that the impact of digital transformation on comprehensive performance of private banks,banks with smaller asset sizes,and nonlisted banks is relatively weak.Secondly,from 2010 to 2013,the impact of the digital transformation of large state-owned commercial banks and joint-stock commercial banks on their overall performance was the largest.From 2014 to 2021,the contribution of other types of commercial banks to the digital transformation increased rapidly,with private banks and joint-stock commercial banks surpassing state-owned banks in terms of contribution,ranking the forefront.Thirdly,excessive industry concentration and equity concentration are not conducive to the effectiveness of digital transformation.Fourth,the overall index of digital transformation and the sub index of business digitalization improve the comprehensive performance of commercial banks mainly through the channels of asset structure,liability structure,and income structure,while the sub index of strategy digitalization and management digitalization improve the comprehensive performance of commercial banks only through the channels of income structure.The policy recommendations of this article are: Commercial banks should continue to promote the depth and breadth of digital transformation,focus on differentiated transformation strategies,form differentiated development strategies,and actively utilize financial technology to achieve business diversification.Relevant departments should conduct policy guidance and risk control measures for digital transformation.