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The Impact of Digital Finance on the Operating Performance of Commercial Banks: Promotion or Inhibition?

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E-Business. Digital Empowerment for an Intelligent Future (WHICEB 2023)

Part of the book series: Lecture Notes in Business Information Processing ((LNBIP,volume 481))

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Abstract

The vigorous development of digital finance has lent fresh impetus to the traditional financial market, and has also had an influence on the business situation. This article uses crawler technology to construct digital finance indicators, and based on the financial data of 42 listed commercial banks from 2011 to 2021, uses the SYS-GMM model to study the impact effect, transmission mechanisms and heterogeneity of digital finance on the operating performance from two dimensions of profitability and risk level. The results show that: First, in terms of linear relationship, digital finance reduces the profitability and increases the risk level of commercial banks; Second, as regards nonlinear relationship, there is a U-shaped relationship between digital finance and the profitability of commercial banks, and an inverted U-shaped relationship with the risk level of commercial banks; Third, digital finance inhibits the operating performance by deteriorating the deposit structure, loan structure and increasing the proportion of non-interest income. Fourth, compared with national commercial banks, the inhibitory influence on the profitability of regional banks is more pronounced, but its impact on risk level is not significantly different.

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Correspondence to Huaihu Cao .

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Dai, M., Cao, H. (2023). The Impact of Digital Finance on the Operating Performance of Commercial Banks: Promotion or Inhibition?. In: Tu, Y., Chi, M. (eds) E-Business. Digital Empowerment for an Intelligent Future. WHICEB 2023. Lecture Notes in Business Information Processing, vol 481. Springer, Cham. https://doi.org/10.1007/978-3-031-32302-7_1

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  • DOI: https://doi.org/10.1007/978-3-031-32302-7_1

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-031-32301-0

  • Online ISBN: 978-3-031-32302-7

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