Research Article
The Impact of Financial Technology on Systemic Risk in Banking: An Empirical Analysis Based on Text Mining
@INPROCEEDINGS{10.4108/eai.6-9-2024.2353627, author={Jingjing Ma}, title={The Impact of Financial Technology on Systemic Risk in Banking: An Empirical Analysis Based on Text Mining}, proceedings={Proceedings of the 3rd International Conference on Public Management, Digital Economy and Internet Technology, ICPDI 2024, September 6--8, 2024, Jinan, China}, publisher={EAI}, proceedings_a={ICPDI}, year={2024}, month={12}, keywords={financial technology banking systemic risk conditional value at risk spillover effects}, doi={10.4108/eai.6-9-2024.2353627} }- Jingjing Ma
Year: 2024
The Impact of Financial Technology on Systemic Risk in Banking: An Empirical Analysis Based on Text Mining
ICPDI
EAI
DOI: 10.4108/eai.6-9-2024.2353627
Abstract
The development of financial technology has a profound impact on the systemic risk of commercial banks. This study constructs a FinTech development index for each listed bank using Python web scraping techniques from a micro perspective. It applies the CoVaR method to measure the spillover level of each listed bank's systemic risk to the banking sector. Based on panel data from 16 listed commercial banks in China from 2009 to 2021, this research explores the impact mechanisms and transmission effects of FinTech on systemic risk in banking. The results show a positive correlation between the development level of FinTech in Chinese listed banks and systemic risk in the banking industry. As the FinTech development in these banks progresses, the spillover level of systemic risk exceeds the risk dispersion effects. There is also heterogeneity among different types of banks; the development of FinTech in state-owned banks, for instance, reduces their spillover levels of systemic risk.
