Research On The Dynamic Impact Of Financial Innovation And Systemic Financial Risk On Financial Resilience

In recent years,due to the occurrence of black swan events,Sino-US trade war and other events,preventing and resolving systemic financial risks and enhancing the resilience of financial markets are very important to maintain the smooth operation of China’s economy.The challenges facing the financial system intensify,financial risks accumulate,and financial resilience is more likely to be affected.Therefore,how to maintain strong financial resilience in a volatile environment has received extensive attention from many scholars.In this context,this paper discusses the relationship between financial innovation and the dynamic impact of systemic financial risk on financial resilience.The research content of this paper can not only be used to predict the trend of financial market fluctuations,but also to provide effective support for the formulation of economic policies.This paper draws the following main conclusions:(1)Through the TVP-VAR model,the dynamic influence relationship between financial innovation,systemic financial risk and financial resilience is studied.It is found that,first,under the positive impact of financial innovation,the short-term impact on financial resilience is the smallest,and the long-term impact is the largest.The impact of systemic financial risk on financial resilience is minimal in the short term and greatest in the medium term.Second,among the three specific time points selected in this paper,mobile online payment was carried out on a small scale and online payment was just beginning to be popularized,and the impact trend of financial innovation and systemic financial risk on financial innovation income was similar,showing greater sensitivity to financial resilience when mobile online payment was fully popularized in 2020.(2)This paper uses the MSVAR model to study the interinfluence relationship and difference between financial innovation,systemic financial risk and financial resilience under different market conditions.It is found that,first,China’s financial market can be divided into two regimes,with regime 1 and regime 2 representing the stability of financial innovation and the instability of financial innovation,respectively.Second,under the positive impact of financial innovation,financial resilience has been enhanced in the short term and stabilized in the long term,and the degree of reflection is greater in the state of regime 2.Third,under the positive impact of systemic financial risks,financial resilience will be weakened in the short term and stabilized in the long term.The research content of this paper is of great significance for preventing systemic financial risks and maintaining the stability of the financial market.