Research On The Impact Of Digital Finance On The Systemic Risk Of Banks

In recent years,a large number of emerging technologies such as big data,blockchain and machine learning have been applied in the financial field,and “digital finance” has become a hot topic for research.With China’s digital currency pilot work in full swing,and the active promotion of digital currency research and development has been included in the 14 th Five-Year Plan,the next few years will be an important period for the development of digital finance.However,the rapid development of digital finance has subverted the development of China’s banking industry in many aspects,therefore,it has become an urgent and important research topic to study the impact of digital finance development on the systemic risk of banks.Based on the issue of the impact of digital finance on the systemic risk of banks,this paper selects 24 commercial banks as research objects and analyzes them in the following four parts:First,the research background and research significance of this paper are analyzed,and the existing literature on digital finance and systemic risk of banks is reviewed,and the research content and research methods of this paper are explained.At the same time,the relevant concepts and theoretical foundations of the field are described.Second,the current status of systemic risk in Chinese banks is analyzed in detail,and the value of systemic risk of the sample banks is measured using the dynamic conditional value-at-risk approach as the explanatory variables for the empirical analysis in the later section.Third,the current development status and potential risks of digital finance at the bank level in China are explained,and the path of the impact of digital finance development on the systemic risk of banks is analyzed based on the theoretical level,and the correlation between the two is sorted out to provide a logical framework for the following analysis.Fourth,an empirical level analysis is conducted,and empirical tests are performed using panel data.A mediating effect model is developed to analyze and explore the overall degree of impact of digital finance on bank systemic risk and the specific degree of impact through the mediating path.It is found that digital finance can increase the level of systemic risk in the banking industry by raising its management costs and increasing banks’ risk appetite.Finally,the conclusions of this paper are summarized and recommendations for countermeasures applicable to the development of digital finance as well as the banking industry in China are proposed.