THE IMPACT OF BANK DIGITAL TRANSFORMATION ON BANK SYSTEMIC RISK: EVIDENCE FROM CHINA’S LISTED BANKS
This study employs causal forests to analyze the relationship between bank digital transformation and bank systemic risk using data of 41 listed banks in China from 2010 to 2021. The results show that bank digital transformation mitigates bank systemic risk of state-owned banks through increasing the capital adequacy ratio and decreasing interbank business. For non-state-owned banks, digital transformation increases the bank’s systemic risk for some while decreasing it for others. In addition, there is a U-shaped relationship between the asset turnover ratio and the impact of bank digital transformation on bank systemic risk. Our research offers valuable suggestions for guiding practical management decisions and policy formulation.
Authors
- Lei Pu (ORCID: https://orcid.org/0000-0002-4397-2155)
- Yuxin Chen (ORCID: https://orcid.org/0000-0002-4622-8516)
- Yewei Huang (ORCID: https://orcid.org/0009-0007-5881-3871)
- Changjun Zheng
Institutions
- Huazhong University of Science and Technology (CN)
Publication Details
- Journal
- The Singapore Economic Review
- Published
- 2025-10-10
- DOI
- https://doi.org/10.1142/s0217590825500481
- Citations
- 1
- Primary Topic
- FinTech, Crowdfunding, Digital Finance
- Type
- article
- Field-Weighted Citation Impact
- 2.28