Study on the Influence of Digital Inclusive Finance on the Credit Risk of Commercial Banks in China

DOI

10.2991/978-94-6463-734-2_20How to use a DOI?

Keywords

Digital Inclusive Finance; Commercial Banks; Credit Risk

Abstract

Digital Inclusive Finance (DIF) has improved the convenience and efficiency of financial services, reduced banks’ operating costs, and promoted the stability of commercial banks. This study aims to explore the impact of DIF on credit risk in Chinese commercial banks. An empirical analysis is conducted using a fixed effects model. The relationship between the development of DIF and commercial bank credit risk presents an inverted U shape. Initially, the expansion of Internet finance and financial technology companies led to customer loss for commercial banks, reducing traditional business profits and prompting banks to lower loan approval standards to expand their business scale, thereby increasing credit risk. As digital inclusive finance matures and regulatory mechanisms improve, commercial banks collaborate with financial technology companies to form cooperative models that jointly reduce credit risk. Furthermore, the impact of DIF is not significant for nationwide banks and rural commercial banks but has a significant influence on state-owned large banks and urban commercial banks. This study provides valuable references for Chinese commercial banks in promoting DIF, emphasizing the importance of maintaining robust risk management while innovating, and offering theoretical support for financial policymakers.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Yubo Yuan
PY  - 2025
DA  - 2025/05/27
TI  - Study on the Influence of Digital Inclusive Finance on the Credit Risk of Commercial Banks in China
BT  - Proceedings of the 2025 10th International Conference on Social Sciences and Economic Development (ICSSED 2025)
PB  - Atlantis Press
SP  - 165
EP  - 174
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-734-2_20
DO  - 10.2991/978-94-6463-734-2_20
ID  - Yuan2025
ER  -