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The Impact of Inclusion Digital Finance on the Operating Performance of Listed Commercial Banks in China

Author(s)

Shixuan Zheng, Yajuan Liu*, Kaiyue Zhao

Affiliation(s)

Department of Financial Management, Beijing Information Science and Technology University, Beijing, China *Corresponding Author

Abstract

In the context of the national "do a good job in five articles and promote high-quality financial development", this paper empirically examines the impact of the development of inclusion digital finance on the financial performance of commercial banks based on the Inclusive Digital Finance Index of Peking University and the unbalanced panel data of 42 listed commercial banks in China. The results prove that the depth of use of inclusion digital finance is positively related to bank operating performance; the breadth of coverage brings negative impact on commercial bank performance, while compared with state-owned commercial banks, non-state-controlled commercial banks have been relatively less. In order to better enhance the level of bank business performance, based on the findings, this paper puts forward the following recommendations: use financial resources to support the development of scientific and technological innovation, guide commercial banks to strengthen digital transformation, and encourage commercial banks to explore differentiated development.

Keywords

Inclusion Digital Finance; Commercial Banks; Financial Performance; Fintech; Financial Innovation and Risk Management

References

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