Research on the Risk Spillover Effect of Digital Financial Development on China’s Commercial Banks
In recent years, digital finance has been developing continuously, and commercial banks have developed their own digital financial services in order to gain more profits from it in line with the advancement of technology, digital finance has presented commercial banks with unparalleled opportunities...
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| Format: | Article |
| Language: | English |
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EDP Sciences
2024-01-01
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| Series: | SHS Web of Conferences |
| Online Access: | https://www.shs-conferences.org/articles/shsconf/pdf/2024/28/shsconf_dsm2024_04008.pdf |
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| _version_ | 1846125601856946176 |
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| author | Deng Xinyu |
| author_facet | Deng Xinyu |
| author_sort | Deng Xinyu |
| collection | DOAJ |
| description | In recent years, digital finance has been developing continuously, and commercial banks have developed their own digital financial services in order to gain more profits from it in line with the advancement of technology, digital finance has presented commercial banks with unparalleled opportunities, as well as great challenges. To examine the influence of digital finance on the risk spillover among various categories of commercial banks. Theoretical analysis is employed to examine the direct and indirect impacts of digital finance on the risk transmission of commercial banks, as well as to measure the risk spillover effect of digital finance on different types of commercial banks using the GARCH-CoVaR model with skewed t-distribution. The results of the study show that among Chinese commercial banks, nationalized banks have the lowest level of risk, while city commercial banks have the highest risk. By comparing the risk spillover values (%CoVaR), it can also be seen that the highest risk spillover is for nationalized banks and the lowest is for urban commercial banks. This conclusion is of significance for regulating the systemic risk spillover of Internet finance, as well as promoting the sound development of Chinese commercial banks. |
| format | Article |
| id | doaj-art-3cd90006084d44e0bafc2d12e1ed82e5 |
| institution | Kabale University |
| issn | 2261-2424 |
| language | English |
| publishDate | 2024-01-01 |
| publisher | EDP Sciences |
| record_format | Article |
| series | SHS Web of Conferences |
| spelling | doaj-art-3cd90006084d44e0bafc2d12e1ed82e52024-12-13T10:11:02ZengEDP SciencesSHS Web of Conferences2261-24242024-01-012080400810.1051/shsconf/202420804008shsconf_dsm2024_04008Research on the Risk Spillover Effect of Digital Financial Development on China’s Commercial BanksDeng Xinyu0Department of Finance and Trade, Zhuhai College of Science and TechnologyIn recent years, digital finance has been developing continuously, and commercial banks have developed their own digital financial services in order to gain more profits from it in line with the advancement of technology, digital finance has presented commercial banks with unparalleled opportunities, as well as great challenges. To examine the influence of digital finance on the risk spillover among various categories of commercial banks. Theoretical analysis is employed to examine the direct and indirect impacts of digital finance on the risk transmission of commercial banks, as well as to measure the risk spillover effect of digital finance on different types of commercial banks using the GARCH-CoVaR model with skewed t-distribution. The results of the study show that among Chinese commercial banks, nationalized banks have the lowest level of risk, while city commercial banks have the highest risk. By comparing the risk spillover values (%CoVaR), it can also be seen that the highest risk spillover is for nationalized banks and the lowest is for urban commercial banks. This conclusion is of significance for regulating the systemic risk spillover of Internet finance, as well as promoting the sound development of Chinese commercial banks.https://www.shs-conferences.org/articles/shsconf/pdf/2024/28/shsconf_dsm2024_04008.pdf |
| spellingShingle | Deng Xinyu Research on the Risk Spillover Effect of Digital Financial Development on China’s Commercial Banks SHS Web of Conferences |
| title | Research on the Risk Spillover Effect of Digital Financial Development on China’s Commercial Banks |
| title_full | Research on the Risk Spillover Effect of Digital Financial Development on China’s Commercial Banks |
| title_fullStr | Research on the Risk Spillover Effect of Digital Financial Development on China’s Commercial Banks |
| title_full_unstemmed | Research on the Risk Spillover Effect of Digital Financial Development on China’s Commercial Banks |
| title_short | Research on the Risk Spillover Effect of Digital Financial Development on China’s Commercial Banks |
| title_sort | research on the risk spillover effect of digital financial development on china s commercial banks |
| url | https://www.shs-conferences.org/articles/shsconf/pdf/2024/28/shsconf_dsm2024_04008.pdf |
| work_keys_str_mv | AT dengxinyu researchontheriskspillovereffectofdigitalfinancialdevelopmentonchinascommercialbanks |