Research On The Influence Of Digital Finance On The Operation Risk Of Small And Medium-sized Commercial Banks

Digital finance is a new generation of financial services generated by financial institutions and Internet companies integrating various digital technologies such as block chain,cloud computing and big data with traditional financial industry.Financial institutions can use digital technology to innovate products and services,improve operational efficiency and optimize risk control capabilities.In this context,it is more and more important to discuss how small and medium-sized commercial banks combine their own characteristics,keep up with the trend of digital finance development,and successfully use digital technology to reduce their own business risks.Small and medium-sized commercial banks focus on local business,serve for regional economic development,actively respond to the government’s economic and social development decisions and planning,and help "agriculture,rural areas and farmers".Small and medium-sized commercial banks play an indispensable role in China’s financial system,because they play an important role in the healthy and stable development of China’s financial industry.If small and medium-sized commercial banks bear more operational risks,it is not conducive to the development of regional economy,and may cause systemic risks.Therefore,the study of the impact of digital finance on the operational risk of small and medium-sized commercial banks has great significance for the healthy development of commercial banks.This article describes the effects of digital finance on the operating risk of Chinese small commercial banks using theoretical analysis and empirical methods.Firstly,on the basis of clarifying the concept and connotation of key variables,this paper combs it on the basis of relevant theoretical and empirical research at home and abroad.In order to promote the development and current situation of China’s digital finance,this directive combines the current situation and development of China’s digital finance to promote the internal influence mechanism of digital finance on the operational risks.Second,Chinese city commercial banks and rural commercial bank panel data from 2013 to 2020 are collected.The generalized moment estimation method of dynamic panel system is used to quantitatively analyze the effects of digital finance on the operational risk of small and medium-sized enterprise banks.And discuss the different types,different microscopic characteristics and located in different commercial banks operating risk is affected by a number of financial performance exists heterogeneity,and then drawing related conclusions and recommendations provide a number of financial development for small and medium-sized commercial banks to reduce business risks for most small and medium-sized banks to improve business risks and improve financial regulatory systems.The results show that :(1)digital finance affects the operating costs of small and medium-sized commercial banks through three routes: operating costs,profitability and risk management ability.(2)digital finance development has reduced the operating risk of small and medium-sized commercial banks.Banks use digital technology to bring service innovation,business development and management upgrading to banks,and effectively resist the business risks faced by banks.(3)Digital finance has different types,different micro characteristics,different regions of small and medium-sized commercial banks flow risk.The development of digital finance has a significant impact on the overall risk reduction of urban commercial banks.Digital financial technology can reduce the operational risk of small and medium-sized commercial banks with smaller asset scale,lower capital adequacy ratio and higher liquidity more obviously.In addition,digital finance has significantly reduced the operational risk of small and medium-sized commercial banks in the eastern and western regions of China,and the risk reduction effect for central and western banks is the most obvious.