Research Article
The Impact of Digital Inclusive Finance on the Operating Performance of Commercial Banks and Its Mechanism Analysis
@INPROCEEDINGS{10.4108/eai.7-7-2023.2338054, author={Xiujun Zhang and Dongxia Qi}, title={The Impact of Digital Inclusive Finance on the Operating Performance of Commercial Banks and Its Mechanism Analysis}, proceedings={Proceedings of the 2nd International Conference on Financial Innovation, FinTech and Information Technology, FFIT 2023, July 7--9, 2023, Chongqing, China}, publisher={EAI}, proceedings_a={FFIT}, year={2023}, month={10}, keywords={digital financial inclusion; commercial banks; business performance; bank competition; risk-taking}, doi={10.4108/eai.7-7-2023.2338054} }- Xiujun Zhang
Dongxia Qi
Year: 2023
The Impact of Digital Inclusive Finance on the Operating Performance of Commercial Banks and Its Mechanism Analysis
FFIT
EAI
DOI: 10.4108/eai.7-7-2023.2338054
Abstract
The rapid development of digital inclusive finance has produced a series of impacts on traditional financial sectors such as commercial banks. This paper mainly analyzes the influence of digital inclusive finance on the operating performance of Chinese commercial banks from the two perspectives of bank competition and risk bearing. In this paper, 115 commercial banks in China are selected as samples for empirical analysis based on their panel data from 2011 to 2021. Firstly, the fixed-effect model estimation method is adopted to find that the promotion of digital inclusive finance has a significant adverse impact on the business performance of commercial banks. Secondly, this paper takes bank competition and risk taking as intermediary variables and uses the intermediary effect model to conduct an empirical analysis. The empirical results show that the de development of digital inclusive finance will promote the competition of commercial banks and improve the risks of commercial banks, thus reducing the operating performance of commercial banks. Therefore, Chinese commercial banks should change their business strategies, pay attention to risk prevention and control, and poll icy authorities should pay attention to the degree of competition of commercial banks to prevent excessive competition.
