The Impact of Commercial Banks' Fintech Development on Their Own Risk Management

This study uses publicly available data from January 2011 to December 2020 drawn from the Wind database and the annual reports of nine major Chinese commercial banks—Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank, Bank of Communications, China Merchants Bank, China Minsheng Bank, China CITIC Bank, and Industrial Bank—to construct a fintech index for each year from 2011 to 2020. By empirically analyzing the relationship between this fintech index and the asset-to-capital ratio of these banks, the paper examines how fintech development affects the risk profile of commercial banks.