Digital Finance,Financial Regulation and the Cross-market Risk Spillover of Traditional Finance
Preventing systemic financial risks has always been the core of financial regulation,and it is impossible to do a good job in digital finance without guarding against financial risks.The development of digital finance has changed the structure and density of the traditional financial network,which may intensify the contagion of cross-market risks in traditional finance,and even trigger systemic financial risks.This paper uses the TVP-VAR-SV model to analyze how the development of digital finance affects the cross-market risk spillover effect of traditional finance,and examines the regula-tory differences and functional heterogeneity of the impact of digital finance on the risk spillover effect under different regulatory intensities and function-al differences of digital finance.The research findings of this paper are as follows:first,the development of digital finance exacerbates the total spillover effect of cross-market risks in traditional finance;second,the impact of digital finance on the cross-market risk spillover effect of various markets in tra-ditional finance has market differences;third,the current regulation of digital finance is difficult to effectively regulate the impact of digital finance on the cross-market risk spillover effect of traditional finance;finally,there is functional heterogeneity in the impact of digital finance on the cross-market risk spillover effect of traditional finance.Research suggests that in preventing systemic financial risks,it is necessary to comprehensively consider the mechanism and the effect of digital finance on the cross-market risk spillover of traditional finance,and further incorporate all functions of digital fi-nance into regulation.
digital financetraditional financefinancial regulationrisk spillover effect