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The influence of external factors on the development of China's banking industry: a system dynamics modelling approach

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Abstract

There are many external factors influencing the development of the banking industry, but few literatures discuss the effects of multiple factors on the banking industry. In order to better promote the healthy and stable development of China's banking industry, this paper builds a simulation model based on system dynamics and uses Vensim PLE to systematically discuss the impact of money supply, supervision level, financial innovation, and GDP on bank profits. The simulation results find that money supply, financial innovation, and regulatory levels have a negative effect on profits, but GDP can promote profits.

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Acknowledgements

This paper was supported by Guizhou Key Laboratory of Big Data Statistics Analysis (No. Guizhou Science and Technology Cooperation Platform Talent [2019] 5103)—Simulation analysis of financial market development and evolution based on big data (No. BDSA20200106) and the Fundamental Research Funds for the Central Universities (No.: 2682020ZT113).

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Authors and Affiliations

  1. Guizhou Key Laboratory of Big Data Statistical Analysis, Guizhou University of Finance and Economics, Guiyang, Guizhou, 550025, People’s Republic of China

    Chenggang Li

  2. School of Big Data Application and Economics, Guizhou University of Finance and Economics, Guiyang, Guizhou, 550025, People’s Republic of China

    Chenggang Li & Xintong Zuo

  3. Department of Statistics in School of Mathematics, Southwest Jiaotong University, Chengdu, 611756, People’s Republic of China

    Lei Huang

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  1. Chenggang Li
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  2. Xintong Zuo
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Correspondence to Xintong Zuo.

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Li, C., Zuo, X. & Huang, L. The influence of external factors on the development of China's banking industry: a system dynamics modelling approach. Wireless Netw 27, 4353–4362 (2021). https://doi.org/10.1007/s11276-021-02647-6

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