Research on the Impact of Digitalization on Risk Taking in Commercial Banks

Commercial banks are confronted with both tremendous opportunities and formidable challenges as a result of the digital transformation, given the swift growth of the digital economy and the advancement of financial technology.This paper selects 131 commercial banks as research samples from 2010 to 2023, and empirically examines the effect of digital transformation on bank risk-taking and its path. It is found that digital transformation of commercial banks can significantly reduce banks' risk taking. The mediation mechanism test shows that commercial bank digital transformation reduces bank risk-taking mainly by improving bank operational efficiency and reducing bank management costs.