Research on Risk Taking Mechanisms of Chinese Commercial Banks from the Perspective of Digital Transformation
- 1 School of Big Data Application and Economics, Guizhou University of Finance and Economics, Guiyang, China
- 2 School of Big Data Application and Economics, Guizhou University of Finance and Economics, Guiyang, China
- 3 Guizhou Institution for Technology Innovation & Entrepreneurship Investment, Guizhou University of Finance and Economics, Guiyang, China
Abstract
Based on the possible impact model of individual digital transformation of Chinese commercial banks on their risk taking, this paper discusses how digital transformation can reduce the risk taking of Chinese commercial banks, and makes an empirical analysis based on the relevant data of Chinese commercial banks from 2010 to 2021. It is found that the development of digital transformation in Chinese commercial banks reduces the level of banks’ risk taking by reducing the management cost and improving the operational efficiency. Heterogeneity analysis shows that digital transformation has a certain difference in the impact on the risk taking of commercial banks of different sizes, and the reduction effect on the risk taking of smaller banks is more obvious. Finally, based on the realistic background, the research results and related analysis, the paper puts forward relevant suggestions for the digital transformation development of Chinese commercial banks.
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