Proceedings of the 5th International Conference on Economic Management and Model Engineering, ICEMME 2023, November 17–19, 2023, Beijing, China

Research Article

Marginal Effects of Intelligent Risk-management Technology on Commercial Bank Credit Risk: A Heterogeneity Analysis on Banks of Different Categories

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  • @INPROCEEDINGS{10.4108/eai.17-11-2023.2342676,
        author={Yilun  Yang and Zhe  Niu},
        title={Marginal Effects of Intelligent Risk-management Technology on Commercial Bank Credit Risk: A Heterogeneity Analysis on Banks of Different Categories},
        proceedings={Proceedings of the 5th International Conference on Economic Management and Model Engineering, ICEMME 2023, November 17--19, 2023, Beijing, China},
        publisher={EAI},
        proceedings_a={ICEMME},
        year={2024},
        month={2},
        keywords={credit risk heterogeneity analysis intelligent risk-management technology two-way fixed effects model},
        doi={10.4108/eai.17-11-2023.2342676}
    }
    
  • Yilun Yang
    Zhe Niu
    Year: 2024
    Marginal Effects of Intelligent Risk-management Technology on Commercial Bank Credit Risk: A Heterogeneity Analysis on Banks of Different Categories
    ICEMME
    EAI
    DOI: 10.4108/eai.17-11-2023.2342676
Yilun Yang1,*, Zhe Niu1
  • 1: Duke Kunshan University
*Contact email: yy312@duke.edu

Abstract

With the rapid advancements in artificial intelligence and data analysis, Financial Technology (FinTech) has become increasingly utilized in assessing creditworthiness and monitoring loan utilization of borrowers. This study delves into the nuanced effects of intelligent risk management technology on credit risk across different categories of commercial banks. Employing a two-way fixed effects model, we analyzed data encompassing all publicly listed Chinese commercial banks from 2012 to 2022. The results emphasize that the adoption of intelligent risk management technology significantly reduces credit risk, particularly for city-based banks. Furthermore, our findings indicate that joint-stock banks experience a more substantial effect from intelligent risk management technology compared to state-owned banks. Importantly, these results remain consistent even after employing instrumental variables and conducting rigorous robustness tests.