Proceedings of the International Conference on Information Economy, Data Modeling and Cloud Computing, ICIDC 2022, 17-19 June 2022, Qingdao, China

Research Article

The Influence of Digital Inclusive Finance on the Non-performing Loan Ratio of Commercial Banks

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  • @INPROCEEDINGS{10.4108/eai.17-6-2022.2322814,
        author={Jingyi  Zhang},
        title={The Influence of Digital Inclusive Finance on the Non-performing Loan Ratio of Commercial Banks},
        proceedings={Proceedings of the International Conference on Information Economy, Data Modeling and Cloud Computing, ICIDC 2022, 17-19 June 2022, Qingdao, China},
        publisher={EAI},
        proceedings_a={ICIDC},
        year={2022},
        month={10},
        keywords={digital inclusive finance; non-performing loan ratio; commercial bank; heterogeneity},
        doi={10.4108/eai.17-6-2022.2322814}
    }
    
  • Jingyi Zhang
    Year: 2022
    The Influence of Digital Inclusive Finance on the Non-performing Loan Ratio of Commercial Banks
    ICIDC
    EAI
    DOI: 10.4108/eai.17-6-2022.2322814
Jingyi Zhang1,*
  • 1: Renmin University of China Beijing
*Contact email: zhangjingyi555@126.com

Abstract

The commercial bank serves as a crucial part in developing digital, inclusive finance, so it is important to figure out the influence between them. From the perspective of bank risk, this paper empirically tests the influence mechanism of digital inclusive finance on the non-performing loan ratio of commercial banks based on the panel data of 87 Chinese commercial banks from 2014 to 2019, using the methods of fixed panel model and dynamic panel model. The findings show that the relationship between the development of digital inclusive finance and the non-performing loan ratio of commercial banks presents an inverted U-shaped curve, and there are heterogeneities in the critical point according to different bank types and regions. The restraining effect of digital inclusive finance on the non-performing loan ratio of commercial banks is more likely to occur in urban commercial banks and commercial banks in eastern China. The empirical results of this paper provide a more comprehensive perspective for the bank to control and prevent risks, which are of great significance for commercial banks to perfect the performance of their non-performing loan ratio and improve their operations.