Cross‐Agency Spillover Effects of Bank Internal Regulation on Systemic Risk: The Moderating Role of <scp>FinTech</scp>

ABSTRACT This study uses the spatial panel model to explore the cross‐agency spillover effects of bank internal regulation on systemic risk and the moderating effect of bank FinTech in the relationship between them. We construct spatial weight matrices for asset and liability homogenisation to capture the channels of systemic risk transmission in banks. The text analysis approach is used to measure the internal regulation of the bank and the FinTech level. Empirical results demonstrate that the local bank's internal regulation can significantly reduce its own systemic risk. The neighbouring banks' internal regulation can significantly reduce the systemic risk of the local bank. As the bank FinTech level increases, the role of bank internal regulation in reducing systemic risk will gradually decline. Additionally, both asset and liability homogenisation are potential channels for systemic risk spillover.